The Brazilian Tax Reform, established by Constitutional Amendment No. 132/2023, marks one of the most significant changes to the country's tax system in decades. With gradual implementation starting in 2026 and a transition period until 2033, the reform aims to simplify the tax structure, foster competitiveness, and improve the business environment. However, its impact goes far beyond the legal sphere: it affects fiscal, accounting, legal, and technology departments, requiring companies to reposition themselves strategically.
Among the main structural changes, the most notable is the Dual VAT (Value Added Tax) concept, which replaces five existing taxes with two new ones: CBS, under federal jurisdiction, and IBS, under state and municipal jurisdiction. This model, adopted in countries such as Canada and India, is designed to ensure greater simplicity, transparency, and neutrality in consumption taxation, while respecting the autonomy of each government level. The creation of a Selective Tax, targeting products harmful to health and the environment, is also part of this restructuring, reinforcing the regulatory role of the new fiscal policy.
More than just understanding the new taxation logic, companies must prepare to operate under it in practice, which involves significant changes in systems, processes, and organizational structures. In this scenario, CIOs and CTOs play a strategic role, leading the adaptation of corporate systems, data integration, and modernization of the technological architecture needed to support the tax transition.
This article presents a multidisciplinary analysis of the main effects of the Reform, highlighting risks, opportunities, and adaptation paths for companies that wish to anticipate the requirements of this new scenario.
Fiscal Perspective: a new revenue model
The Reform proposal replaces five current taxes: PIS, Cofins, IPI, ICMS, and ISS, with two new ones: the Contribution on Goods and Services (CBS), under federal jurisdiction, and the Tax on Goods and Services (IBS), managed by states and municipalities. Additionally, a Selective Tax will be created, applied to goods and services harmful to health and the environment.
One of the pillars of the new structure is full non-cumulativity, which means companies will be able to use credits throughout the entire production chain. Although the model promises greater transparency and neutrality, the immediate impacts can be significant, especially for sectors with few recoverable credits, such as services and technology.
Impact of Tax Reform by sector:
Source: Dootax. Sectoral impact consultation based on PEC 45/2019. Available at: https://dootax.com.br/reforma-tributaria-impacto-setores-consulta
As a consequence of this new logic, it is estimated that the combined rate of CBS and IBS will be around 25%, according to simulations by consulting firms such as KPMG and Deloitte. This percentage, although designed to maintain current revenue, may represent an increase in tax burden for companies currently opting for Presumed Profit, which often benefit from simplified regimes. In this sense, tax planning must be reviewed, with special attention to pricing composition, transfer policies, and contract revision.
Accounting impacts: reorganizing the financial structure
The new tax structure imposes a series of accounting adjustments on companies. One of the main points is the end of the input logic as a criterion for tax credits, replaced by a model where all expenses related to operations automatically generate credit. This new design directly affects revenue recording, cost calculation, and tax provisions.
Accounting for the new taxes will require revision of chart of accounts, cost centers, and ways of measuring profitability by product, unit, or customer. The separation between regimes during the transition phase, where old and new taxes will coexist, brings additional challenges, especially in consolidating financial statements.
Companies using ERPs such as SAP, TOTVS, and Oracle will need to adapt their systems to reflect this new accounting logic. This includes adjustments to tax tables, calculation engines, reports, and integrations with BI and management control tools. The accounting team will play a fundamental role in the technical translation of the reform for financial statements and in preparing audits.
In this context, joint action between accounting and IT becomes even more strategic, especially given the need for specific parameterizations in tax calculation engines. INSI, as a SAP partner, supports these technical adaptations in synergy with the operational changes required by the new legislation.
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Legal challenges: transition, disputes, and contractual governance
The new tax system, although simpler in its proposal, brings much legal uncertainty, especially during the transition period between 2026 and 2033. The coexistence of regimes may generate double taxation in some cases, requiring redoubled attention from the legal department to avoid unexpected liabilities.
Furthermore, many current contracts have clauses that do not anticipate structural changes like this. It will be necessary to review adjustment indices, transfer clauses, and validity periods, in light of the new taxation. Jurisprudence and infra-legal standards will still be consolidated, which increases the importance of proactive legal action.
Disputes over crediting, reimbursement, and interpretation of the CBS and IBS calculation base are also expected. Preventive action through opinions, internal memoranda, and contractual updates will be essential to mitigate risks and ensure legal security in new businesses.
Technological transformation: the invisible foundation of adaptation
Technology occupies a strategic position in implementing the Tax Reform. The new model requires traceability, consistency, and data standardization, which demands robust and well-integrated systems. For many companies, this represents not just adjustments, but true digital transformation projects.
The main points of attention include:
- Adaptation of ERPs (such as SAP, TOTVS, Oracle, among others) to reflect the new tax and accounting rules.
- Update of tax calculation engines, parameterizations, and tax plans.
- Review of ancillary obligations, with direct impact on invoice issuance, SPED file generation, and tax calculation.
- Automation of reports and dashboards to monitor rates, credits, and transfers.
Companies that have already invested in digitalization and data centralization tend to get ahead. Those still operating with multiple systems, parallel spreadsheets, and manual processes will face greater complexity. In this scenario, technology and tax compliance teams must work in synergy, with constant monitoring of legal updates and systems provided by fiscal and ERP software vendors, such as SAP, TOTVS, Oracle, Thomson Reuters, among others.
INSI has been actively monitoring this process. In our article "Tax Reform: challenges and opportunities for companies using SAP", published in January 2025, we highlight how companies can anticipate changes through a structured approach that integrates technology, compliance, and fiscal strategy. The content is especially useful for organizations using SAP and other enterprise management platforms.
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Alphanumeric CNPJ and ancillary obligations: modernization and complexity
Among the structural changes that accompany the Tax Reform, the introduction of a new alphanumeric CNPJ model stands out, which will bring more granularity to the recording of tax information. The proposal is to create a structure similar to the IBGE code, allowing detailing by establishment, activity, and location, with greater control by the Tax Authority.
From a technical standpoint, this change directly impacts:
- Internal and supplier databases;
- ERP, CRM, and customer registration systems;
- Integrations with banking and fiscal platforms;
- Compliance documentation and ancillary obligations.
Companies will need to review their records and adjust their systems to accept this new format, in addition to ensuring that all records are updated, validated, and synchronized. Ancillary obligations, in turn, will also be reformulated to reflect the new collection model, which may mean increased frequency of deliveries, requirement for data granularity, and real-time integration with the Tax Authority.
This scenario demands a more robust data governance approach, with system integration and precise management of tax records. INSI supports companies in modernizing their technological structures to deal with these requirements through solutions focused on IT architecture, DataOps services, and intelligent automation, including the implementation of Artificial Intelligence Agents (AI Agents), to support the operational journey in routine tasks.
Strategic anticipation to lead transformation
More than a tax reform, Brazil is experiencing systemic transformation. The new collection model does not only impact taxes, it alters the operating logic of companies, requiring unprecedented integration between areas such as IT, fiscal, accounting, legal, and planning.
Companies that limit themselves to reacting as obligations come into effect tend to face operational overload, legal risks, and loss of competitiveness. In contrast, those that treat the Reform as a strategic lever, with structured investments in technology, data governance, and process review, will be better prepared to grow sustainably.
Practical recommendations:
- Create a multidisciplinary committee to monitor the transition and review internal policies.
- Review your ERP systems and fiscal engines with certified vendors.
- Reevaluate commercial contracts with transfer and adjustment clauses.
- Invest in training accounting, legal, and IT teams, focusing on the new model.
- Continuously monitor complementary legislation and infra-legal adjustments that will continue to be published until 2033.
- Review your internal processes to identify automation opportunities and strategic use of artificial intelligence, increasing operational efficiency and strengthening the company's financial management.
INSI supports companies in this process with robust technological solutions, trained teams, and a multidisciplinary approach that integrates IT, data, and business. We act as strategic partners in system modernization and in preparing organizations for the operational challenges of the new tax logic.
Summary of main Tax Reform impacts by area:
