Brazil's Tax Reform – CBS and IBS in SAP: Intellevo Has Already Validated the New Solution

Brazil's tax reform has started to take practical shape inside ERP systems, and once again Intellevo is ahead of the curve.

In our internal tests, we have already validated the new CBS (Contribution on Goods and Services) and IBS (Tax on Goods and Services) taxes in SAP across the entire flow — from sales order creation to the final accounting posting.

This confirms that the SAP update delivers:

• The new taxes included in pricing;
• CBS and IBS shown separately on the NF-e (Brazilian electronic invoice);
• A separate accounting entry for each tax.

What changed in SAP?

To meet the requirements of Brazil's tax reform, SAP has implemented several technical updates to the system, including:

• New access sequences specific to CBS and IBS;
• New account keys to ensure correct posting;
• New pricing conditions in the standard SAP pricing procedure (RVABRA);
• Mapping of the new taxes in the NF-e issuance structure.

Intellevo also validated these updates in its own environment, testing how they work in practice and assessing the impact on pricing and tax document issuance.

Below is a practical example of how the new tax types are mapped in SAP:

We also had to configure tax handling in accounting so that CBS and IBS amounts are posted as separate entries — increasing transparency and simplifying tax compliance.

Here is how we configured the accounting process to reflect the new taxes:

• 2. Hands-On Tests and Intellevo Findings To validate the scenario described, Intellevo ran hands-on tests in its environment, with the following findings:
• When the sales order is created, SAP calculates the three new taxes (IBS + CBS) based on the configured rates.
• SAP displays the three new tax types directly on the invoice during logistics processing and billing.
• SAP displays each tax separately in the accounting entry.
• Important notes During this adaptation phase, keep the following assumptions in mind:
• First, CBS and IBS amounts will be added to the invoice total, without being consolidated into a single base;
• In addition, SAP has not yet released the Selective Tax (IS, nicknamed the “sin tax”).
Further deliveries are therefore expected as the regulation of Brazil's tax reform progresses. If your operation depends on SAP, now is the time to act. Contact Intellevo to find out how to prepare your company for this new tax landscape.