Simples Nacional businesses face tax regime choice in 2026

Under Brazil's tax reform, micro-enterprises (ME) and small businesses (EPP) enrolled in the Simples Nacional regime will face a critical decision in September 2026. Companies must choose between maintaining the collection of IBS and CBS within the unified DAS guide or adopting a hybrid regime where these taxes are calculated separately.

This choice, governed by LC 214/2025, significantly impacts tax credit utilization and B2B competitiveness. In the standard DAS scenario, companies do not claim credits on their own acquisitions, and their customers are limited to credits based on the actual tax paid within the DAS. In the hybrid scenario, companies can opt to calculate IBS and CBS under the regular regime while maintaining Simples Nacional for other taxes like IRPJ and CSLL.

The decision window is scheduled for September 1 to September 30, 2026, with a retraction period available in November 2026. Micro-entrepreneurs (MEI) are excluded from this specific choice and will maintain their fixed monthly DAS. The decision will dictate operational structures and cash flow impacts starting in the first half of 2027.