Companies operating in Brazil are facing a critical paralysis in their 2027 financial and supply-chain planning as the final tax rate for the country’s landmark consumption tax reform remains undetermined, a problem compounded by a looming presidential election that threatens to upend the entire new system. The federal Contribution on Goods and Services (CBS) is scheduled to fully replace the existing PIS and COFINS taxes on January 1, 2027, marking the first material financial impact of the massive tax overhaul. However, the exact reference rate for this new value-added tax (VAT) system is still a political variable, a figure the Brazilian Senate will not officially set until late 2026.