- Brazil’s Federal Tax Authority set September 30, 2026 as the deadline for micro and small businesses to make tax elections affecting their treatment from January 1, 2027.
- For the first time, entry into the Simplified Tax Regime must be elected in September of the prior year, not in January; applicants for 2027 must submit by September 30, 2026.
- Businesses in or entering the Simplified Tax Regime must choose how to handle the new State VAT (IBS) and Federal VAT (CBS) for the first half of 2027: default “pure” treatment keeps them inside the simplified unified payment, while the optional “hybrid” model removes IBS/CBS from the unified payment and subjects them to regular VAT rules.
- If no hybrid election is made in September 2026, IBS and CBS remain within the Simplified Tax Regime for January–June 2027; a new election window opens in March 2027 for July–December 2027.
- The election affects VAT calculation, input tax credits in B2B transactions, and accounting/ERP/invoicing systems; businesses applying to enter the regime may withdraw their application until November 30, 2026.
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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