Tax Reform

Brazil's biggest tax overhaul in 60 years is already law — and the decisions that determine winners and losers have fixed deadlines. We help MSMEs cross the 2026–2033 transition with method: impact assessment, tax-regime simulation, process readiness and contract review.

Aug 3, 2026CBS/IBS fields mandatory on invoices (in batches through Jan 1, 2027)

Sep 1–30, 2026Simples Nacional window to opt into the hybrid regime

Jan 1, 2027full CBS; PIS/COFINS end; B2B split payment

2029–2032ICMS/ISS → IBS transition (dual assessment)

What we do

Questions our Tax Reform practice helps answer

The reform is not a distant legal topic — it is a sequence of operational decisions with deadlines. The dual VAT (CBS + IBS) redistributes the tax burden across sectors, changes how credits work, inverts the assessment flow and reshapes the cash flow of anyone selling on credit. Crossing the transition well starts with asking the right questions early:

Does my effective tax burden rise or fall under the new system — and what does that demand from my pricing?
For Simples Nacional companies: is the hybrid regime worth opting into in September, or does "pure" Simples still win given my client mix?
Are my systems, registries and chart of accounts ready for at-source validation and assisted assessment?
Which long-term contracts need rebalancing clauses before 2027 — and what does split payment do to my margin?
How do I turn CBS/IBS credits into actual cash, monitoring my suppliers' tax compliance?

26.5–28%

estimated standard rate of the new VAT — though almost no one will pay "the average"

8 years

of transition with two systems running side by side (2026–2033)

+70%

of Simples companies sell to other businesses (IBPT) — tax credits become a sales argument

1,501 h

per year spent on tax compliance today — what the reform promises to reduce (World Bank)

Practice services

How we can help

Service 01

Tax Impact Assessment

A map of the reform's impact on your business: effective rate before × after, sector treatment (60% and 30% reductions, zero-rated basket), cash-flow effect under split payment and your batch's compliance calendar.

Service 02

Tax-Regime Simulation

Pure Simples × hybrid regime (using your real B2B client portfolio), Lucro Presumido × Real under the new system — a documented decision with a full calculation memo, not gut feeling, prepared before the September window.

Service 03

Process & Systems Readiness

Chart of accounts, registries (NCM/CNAE/cClassTrib), ERP and invoicing parameterization, month-end redesign for assisted assessment and three-way reconciliation — daily tax and accounting routines ready for the new flow.

Service 04

Contracts & Transition Pricing

Contract portfolio review with tax-rebalancing clauses, repricing with credit-net price logic (B2B) and pass-through strategy — protecting margins in 2027 and 2029.

The transition clock

A decade in five milestones

2026

Test year: symbolic rates (0.9% + 0.1%), real obligations. Simples window in September.

2027

Full CBS, end of PIS/COFINS, IPI zeroed (except ZFM), Selective Tax, B2B split payment.

2029

ICMS/ISS → IBS transition begins: dual assessment in practice.

2032

Last year of the two systems in parallel.

2033

Full system: CBS + IBS + Selective Tax only. ICMS and ISS end.

Start with what is free

Our reports on the topic

Special · August 2026 · 16 pages

Tax Reform in Practice

What changes for MSMEs — who wins, who loses, and the decisions that cannot wait: the sector map, the Simples decision, the cost of transition and the tax department's new daily routine.

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Special · July 2026 · 15 pages

Split Payment for MSMEs

Brazil's automatic tax withholding: what it is, when it starts, which payments it captures and what it will do to the cash flow and working capital of anyone selling on credit.