Brazil: Standard reference for classifying services for e-invoicing
Brazilian Nomenclature of Services to become mandatory reference for classifying services on all national NFS-e starting January 1, 2026
As part of Brazil's tax reform, a key update on the National Electronic Service Invoice (NFS-e) has been announced. The Brazilian Nomenclature of Services (NBS) is set to become the mandatory reference for classifying services on all national NFS-e starting January 1, 2026. This shift aims to establish a unified and standardized system for service classification nationwide, which is a fundamental step for the implementation of the new indirect tax framework, notably the IBS (tax on goods and services) and CBS (contribution on goods and services).
The NBS is a standardized system for classifying services in Brazil, directly adapted from the United Nations' Central Product Classification (CPC), ensuring that Brazil's service categories are harmonized with global standards. This international alignment makes the NBS the services counterpart to the NCM (which classifies goods), which simplifies cross-border trade and establishes a globally recognized foundation for its new tax system.
Key highlights of this upcoming change include:
- Standardized classification and economic alignment: The adoption of the NBS will replace the diverse and often inconsistent service lists currently used by different municipalities.
- Integration with new tax regimes: NBS codes align with the new tax system to ensure correct CBS and IBS rates and rules are applied.
- Impact on taxpayers: Businesses will need to adapt their ERP/Tax engines to generate XMLs with the new structure. This includes updating to new XML schemas and introducing new fields for capturing CBS/IBS tax classification and tax situation codes. Additional validation rules will be introduced to align with the updated e-invoicing requirements.
While the national deployment of this nomenclature is scheduled to start in 2026, some municipalities have already started adapting to the new codes. For example, the municipality of Barueri (SP) changed its code structure for that of the NBS, anticipating the requirement that will be mandated nationally from the entry into force of IBS and CBS.
KPMG observation
The transition to Brazil's new tax system is an evolving process. Discussions regarding tax reform are ongoing, and the guidelines, including the NBS implementation and its interaction with the NFS-e, may be subject to further adjustments by the government to comply with future mandates or address technical issues.
For further information, contact a KPMG tax professional:
Paula Smith | ppsmith@kpmg.com
Atila Borba Vaccaro Pidoni Mota | atilamota@kpmg.com
Bruno Siqueira Peitl | bsiqueirapeitl@kpmg.com
Philippe Stephanny | philippestephanny@kpmg.com
Ramon Frias | ramonfrias@kpmg.com
Denis Scarassati | denisscarassati@kpmg.com