Brazil postpones mandatory CNPJ technical registration for individuals to 2027

The Federal Revenue Service and the IBS Managing Committee announced that the obligation for individuals to obtain a technical CNPJ – a tax‑identification registration used for issuing documents under the new consumption‑based tax system – has been delayed until 1 January 2027. The extension keeps the current identification mechanisms in place for people who provide goods or services habitually, clarifying that a technical CNPJ does not create a legal entity.

In a related hearing, the National Confederation of Commerce (CNC) urged the government to modernise the Simples Nacional regime and warned that without updates, Brazil’s informal economy could expand. CNC economist Guilherme Cardoso highlighted that roughly 30 million business owners exist, with about two‑thirds operating informally, and argued that raising the MEI ceiling and revising tax tables would boost formalisation and generate around R$ 1 billion in additional social‑security contributions.