Impacts of Brazil’s Tax Reform on the Personal Care, Perfumery, and Cosmetics Sector

Brazil’s Complementary Law 214/2025 introduces two new taxes—the Tax on Goods and Services (IBS) and the Social Contribution on Goods and Services (CBS)—which will directly affect the taxation of personal care, perfumery, and cosmetics products. The new system aims to simplify the tax burden, but costs may increase depending on the final rates and each company’s operational structure.