Brazil has introduced new measures exempting nanoentrepreneurs from CNPJ registration and electronic tax document requirements, while allowing individual microentrepreneurs to use their annual simplified declaration for sales to individual consumers under the Consumption Tax Reform.
Brazil is putting its Consumption Tax Reform into effect, and the new system brings extra paperwork for small operators. Many of them run one-person businesses with little time or staff to handle it. The federal government responded with two new rules that reduce those obligations for the smallest taxpayers on 23 October 2026.
Decree No. 13.140/2026 and CGSN Resolution No. 195/2026 were published on 23 October 2026. Together, they cut paperwork for nanoentrepreneurs and individual microentrepreneurs (MEIs) as the Consumption Tax Reform takes hold.
Nanoentrepreneurs no longer need a CNPJ
The new rules exempt nanoentrepreneurs from registering with the National Registry of Legal Entities (CNPJ). They also do not have to issue electronic tax documents for the new consumption taxes. The authorities say this group includes people who run small operations with low revenue, often to supplement family income.
MEIs can use DASN Simei for individual buyers
Individual microentrepreneurs may now use the Simplified Annual Declaration for Individual Microentrepreneurs (DASN Simei) as their electronic tax document for sales to individual consumers. The Federal Government expects this change to lower compliance costs and make it easier to meet the new requirements.
Oversight stays in place
The tax administration keeps its power to monitor and control taxpayers. The Federal Government states that the measures aim to reduce bureaucracy and administrative costs while giving small businesses greater legal certainty.
The federal government says the simplification will reach the smallest businesses in the country. The rules aim to let small business owners spend less time on forms and more time earning income.
