- Resolution CGSN No. 190/2026 lets Brazilian Simplified Tax regime companies choose, from 2027, whether State VAT and Federal VAT stay inside the simplified system or move to the regular tax system.
- This creates a hybrid option: the company remains in the Simplified Tax regime, but VAT can be calculated separately under the regular regime.
- The choice applies for six-month periods, with the first election for Jan 1–Jun 30, 2027 made Sept. 1–30, 2026, and a second window for Jul 1–Dec 31, 2027 made Mar. 1–31, 2027.
- This is especially important for B2B businesses because keeping VAT inside the simplified regime may limit customers’ tax credits; B2C businesses may be less affected.
- Companies should model both options before September 2026, comparing tax burden, credits, pricing, customer mix, and business impact.
Source: fiscal-requirements.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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