The new logic of taxation: how the Tax Reform reshapes Simples Nacional

The Tax Reform on consumption has already begun its implementation phase in Brazil, introducing a new taxation model that is expected to significantly impact business dynamics, especially for micro and small enterprises (MSEs).

The new system adopts a Dual Value-Added Tax (VAT) model, structured through the Contribution on Goods and Services (CBS), at the federal level, and the Tax on Goods and Services (IBS), shared among States, the Federal District, and Municipalities. This model aims to unify the following existing taxes under IBS and CBS: PIS, Cofins, and IPI (federal), ICMS (state), and ISS (municipal).

Two fundamental pillars of this new system are taxation at the destination of the transaction and broad non-cumulativity, a mechanism designed to ensure economic neutrality by avoiding cascading taxation and allowing tax credits to be offset throughout the production chain.

Simples Nacional: what remains and what changes

Simples Nacional, a regime established by Complementary Law No. 123/2006, is an essential instrument for encouraging small business activities. According to recent data from the Federal Revenue Service, the regime includes 7,348,088 companies, representing approximately 28.6% of all active businesses in the country, highlighting its economic and social relevance.

Constitutional Amendment No. 132/2023 expressly preserved Simples Nacional, as provided in Article 146, §1 of the Federal Constitution, ensuring the continuity of the Unified Special Tax Collection Regime. Therefore, the possibility of unified tax payment remains, including the incorporation of IBS and CBS.

However, Complementary Law No. 214/2025 introduced significant changes that require attention.

One of the main innovations is the possibility for taxpayers under Simples Nacional to calculate IBS and CBS under the regular regime, without being excluded from the simplified regime for other taxes. In practice, this creates a hybrid taxation model.

In this case, the taxpayer will continue calculating taxes covered by Simples Nacional but will no longer pay IBS and CBS through the Simples National Collection Document (DAS). Instead, these taxes will be calculated according to the rules applicable to non-Simples taxpayers, as provided in Article 41 of Complementary Law No. 214/2025.

Thus, the reform allows Simples Nacional taxpayers to choose between two models:
(i) full unified tax collection within DAS, including IBS and CBS; or
(ii) a hybrid regime, in which IBS and CBS are calculated separately under the regular system, while other taxes remain within Simples Nacional.

This choice carries significant practical implications.

Under the traditional model, with full payment via DAS, operational simplicity is maintained and, in many cases, a lower tax burden is achieved. However, the legislation establishes that IBS and CBS paid under this system do not generate full tax credits for purchasers, which may affect competitiveness in business-to-business (B2B) transactions. This is because, in the new system, tax credits become central to economic dynamics, effectively functioning as a “new currency.” In this scenario, larger companies tend to prioritize suppliers that allow full credit utilization. Therefore, choosing unified payment may directly impact the participation and permanence of MSEs in certain production chains.

On the other hand, by opting to calculate IBS and CBS under the regular regime, the taxpayer becomes fully subject to non-cumulativity rules, allowing them to claim credits on purchases of goods and services and transfer those credits to their customers without restrictions.

This option tends to benefit companies involved in more complex production chains, especially those supplying inputs or services to other businesses, where credit utilization is a key factor in pricing and commercial decisions.

Additionally, Complementary Law No. 214/2025 establishes specific rules regarding regime options. The option for Simples Nacional must now be formalized in September, taking effect in the following calendar year, and remains irrevocable for that entire year.

The option to calculate IBS and CBS under the regular regime, however, follows a different logic and may be exercised semiannually, with official deadlines in September (for the semester starting in January of the following year) and March (for the semester starting in July).

It is important to note that, with the enactment of Complementary Law No. 227/2026, the specific rules regarding the Simples Nacional option mentioned above will only come into effect on January 1, 2027. Therefore, there is no requirement to opt in September 2026, preserving micro and small businesses during the testing phase of the new system.

Finally, it is worth highlighting that there is a partial restriction on returning fully to Simples Nacional in certain cases. According to §5 of Article 41 of Complementary Law No. 214/2025, taxpayers who have received IBS and CBS refunds in the current or previous calendar year are prevented from fully returning to Simples Nacional and must continue calculating IBS/CBS under the regular regime.

In light of this new regulatory scenario, the choice of tax regime becomes a strategic decision directly linked to a company’s market positioning.

Companies focused on final consumers tend to benefit from maintaining the simplified model, while those integrated into more structured production chains may find advantages in adopting the hybrid regime due to the possibility of utilizing and transferring tax credits.

In any case, transitioning to the new model requires in-depth technical analysis.

In this context, tax planning and guidance from specialized professionals are essential tools for companies to properly adapt to the changes introduced by the Tax Reform, enabling not only risk mitigation but also the identification of opportunities in the new economic environment.