Simples Nacional faces major tax reform and deadline changes

Brazil is implementing significant changes to the Simples Nacional tax regime as part of its broader consumption tax reform. A critical deadline has been set for September 2026, when micro and small enterprises must decide whether to continue paying the new IBS and CBS taxes through the unified Simples guide or opt for a hybrid model where these taxes are collected separately under standard rules.

This hybrid option allows businesses to generate full tax credits for their clients, potentially increasing competitiveness for those selling to larger industries. However, the transition period through 2032 will require companies to manage the coexistence of old and new tax systems, creating a complex bureaucratic environment.

Additionally, starting September 1, 2026, Simples Nacional companies will be required to use a unified national electronic service invoice system (NFS-e), replacing various municipal models to standardize data and reduce bureaucracy. The Federal Accounting Council (CFC) has also proposed 19 improvements to the regulations to address operational challenges during this transition.