Simples Nacional Companies Must Choose Tax Reform Payment Method by September 30

Micro and small businesses under the Simples Nacional regime have until September 30 to decide how they will pay the new taxes created by Brazil's tax reform. Starting Tuesday, October 1, companies can choose whether to collect the Tax on Goods and Services (IBS) and the Contribution on Goods and Services (CBS) through the existing single payment guide or separately via a hybrid regular regime. This decision will take effect in January 2027. Companies that opt for the regular regime can cancel that decision until November 30. Future opportunities to choose the hybrid system will be available in March and September starting in 2027.

The regular regime allows companies to utilize credits from their own acquisitions and generate full credits for their corporate clients. In contrast, those staying in the unified Simples system will have a credit pass through to buyers that tends to be smaller. Because of this, experts and organizations like Sebrae and Fiesp suggest the hybrid option is generally more advantageous for businesses that primarily sell inputs or services to other companies. The new split payment system will only be available to those in the hybrid regime.

Additionally, the calendar for entering the Simples Nacional system has changed. Companies wishing to join the regime for 2027 must now apply between September 1 and September 30, 2026, rather than in January. To assist with these decisions, Sebrae and Fiesp have released calculators and educational materials. Professionals emphasize that the best choice depends on the specific profile of each business and recommend consulting an accountant to evaluate clients and suppliers.