Brazil to require CNPJ for rural producers by 2027

Starting January 1, 2027, rural producers operating as individuals in Brazil will be required to use a National Registry of Legal Entities (CNPJ) to identify their activities under the new consumption tax system. According to the Receita Federal, this requirement is part of the implementation of the Contribution on Goods and Services (CBS) and the Goods and Services Tax (IBS).

Obtaining a CNPJ does not transform these individuals into legal entities (corporations), nor does it automatically trigger tax payments. The registration is intended for fiscal identification, allowing producers to maintain their legal status as individuals. The measure applies to all rural producers, including those with annual revenues below the R$ 3.6 million threshold and integrated producers working with agro-industries.

Producers currently using their Individual Taxpayer Registry (CPF) for commercial transactions will need to ensure their existing records are linked to a CNPJ and adapt their invoice issuance systems. The deadline was formalized by Decree No. 13,075, which updated CBS regulations, providing additional time for tax administrations and document issuers to adjust their systems.