SuiteTax Latam Engine Adds IBS/CBS Parameter Types for Brazil's 2026 Tax Reform

What changed

The SuiteTax Latam Engine - Brazil Records SuiteApp now includes a large set of predefined cClassTrib parameter types for Brazil's new dual-VAT tax codes: CBS_2026_BR (Contribuição sobre Bens e Serviços) and IBS_2026_BR (Imposto sobre Bens e Serviços). These parameter types are used exclusively in tax determination rules — they cannot be attached directly to tax code records.

The new parameters span five classification ranges:

• 000xxx (Full-rate) — Six codes covering standard taxable situations, road exploitation, automotive incentive projects (Arts. 311/312), FGTS operations not performed by Caixa, and financial services. No parameter value required.
• 200xxx (Reduced-rate) — Over 50 codes covering reduced-rate scenarios such as food for human consumption (Anexo I), medical devices (Anexo XII), accessibility devices, medications, agricultural inputs, education (Prouni), real-estate operations, bars/restaurants, hotels, public transit, travel agencies, intellectual professions, and more. Each requires a parameter value: the percentage of reduction to the tax rate (e.g., enter 40 for a 40% reduction).
• 410xxx (Exempt / Zero-rate / Non-taxable) — Over 30 codes covering exports, inter-establishment transfers, donations, government operations, religious entities, books/periodicals, gold as financial asset, operations prior to IBS/CBS effective dates, and other non-onerous operations. No parameter value required.
• 550xxx (Suspended / Special regimes) — 20 codes covering customs and special regimes: transit, deposit (Arts. 85/87), temporary stay, Repetro variants (Temporário, Permanente, Industrialização, Nacional, Entreposto), export processing zones (ZPE), port modernization incentives (REPORTO), infrastructure incentives (REIDI), naval activity incentives, capital goods exemption, Manaus Free Trade Zone (ZFM) imports, and free trade areas. No parameter value required.

The existing parameter types for legacy Brazilian taxes remain unchanged:

• CSOSN — 10 codes (101–900) for Simples Nacional, applied to ICMS_BR, ICMS_DIFAL_BR, ICMS_ST_BR, FCP_BR, FCP_ST_BR.
• CST (ICMS) — Codes 00–90, applied to various combinations of ICMS_BR, ICMS_DIFAL_BR, ICMS_ST_BR, ICMS_DESONERADO_BR, FCP_BR, FCP_ST_BR. Note that CST 20, 51, and 70 require parameter values (reduced or deferred tax basis percentages).
• CST (IPI) — Codes 00–99 (entry and exit), applied to IPI_BR.
• CST (PIS/COFINS) — Codes 01–55+, applied to COFINS_BR, PIS_BR, and their import/retained variants.
• COFINS/CSLL Rate on CSRF — Two rate-composition parameters for CSRF_RETIDO_BR requiring explicit rate values.
• COFINS Rate on Imported Services — Parameter on PIS_IMPORTACAO_SERVICOS_BR requiring the COFINS rate to apply before PIS calculation.

Technical details

Each parameter type must be associated with either a tax determination settings record or a tax code record. The cClassTrib parameters for IBS/CBS are only available for tax determination rules, not tax codes. Where a parameter value is required (all 200xxx reduced-rate codes), the value represents a percentage — enter the number only (e.g., 40 for 40%).

The predefined SuiteTax Latam Engine plug-ins bundled with the SuiteApp already handle these parameter types during tax calculation. If you have custom plug-ins, you must update them to recognize the new cClassTrib codes for CBS_2026_BR and IBS_2026_BR.

What to do

1. Review your tax determination rules. If your Brazilian subsidiary uses customized tax determination settings, map each transaction scenario to the appropriate cClassTrib code. The 200xxx codes require a reduction percentage value.
2. Update custom SuiteTax plug-ins. If you wrote custom tax calculation plug-ins (rather than relying on the predefined ones), add logic to handle the new CBS_2026_BR and IBS_2026_BR tax codes and their associated cClassTrib parameter types.
3. Verify SuiteApp version. Ensure you are running the latest version of the SuiteTax Latam Engine - Brazil Records SuiteApp. These parameter types ship with the SuiteApp and are not available in older versions.
4. Test reduced-rate scenarios. For any transaction that qualifies for a reduced CBS/IBS rate, confirm that the parameter value (reduction percentage) produces the expected tax amount. Oracle's documentation does not specify the exact formula, so validate that a value of 40 reduces the rate by 40% of the standard rate (e.g., a 10% standard rate becomes 6%).
5. Plan for the IBS/CBS effective date. Note the existence of cClassTrib 410031 — "Fornecimento em Período Anterior ao Início de Vigência de Incidências de CBS e IBS" — which handles transactions occurring before IBS/CBS takes effect. Use this code during the transition period.