Brazil's Split Payment System to Launch Optionally for Companies in 2027

The split payment system, a collection mechanism part of Brazil's tax reform, will be available in the second half of 2027. According to the Federal Revenue Service, its initial use will be optional and limited to business to business (B2B) transactions. The tax authority clarified that the system will be implemented gradually and incrementally, allowing taxpayers to choose which operations will utilize the split. The Federal Revenue Service stated it is not yet possible to determine if the system will become mandatory in 2028, noting that it will become obligatory once payment methods are ready for execution.

The system will not apply to sales to individuals, as the current construction requires both the payer and receiver to have a CNPJ. Additionally, the first phase excludes payments made via credit cards, debit cards, vouchers, cryptocurrencies, and non electronic means. The tool will be available for transfers such as TEF and TED, boletos, and Pix between companies. Cristiane Coelho, president of the National Confederation of Financial Institutions (Fin), stated that the focus is currently on this first delivery and that future phases have not yet been studied.

The split payment applies only to the new taxes on goods and services, CBS and IBS, which begin replacing current taxes in 2027. Consequently, Microentrepreneurs (MEI) are excluded because they do not collect CBS and IBS on sales. However, companies under the Simples Nacional regime may use the split to ensure their customers can receive tax credits.

Two models will coexist. The intelligent split applies to payment methods where the buyer provides the data, such as TED, TEF, and static Pix QR codes. In this model, taxes are collected based on the informed value without government consultation, and any overpayment must be reimbursed to the supplier within three business days. A second model applies to methods where the seller provides the data, including boletos and dynamic Pix QR codes.