Proposed changes by the National Simplified Tax System Management Committee would align Simples Nacional with the Consumption Tax Reform, incorporate IBS and CBS, and require monthly tax calculations to be based on revenue earned rather than payments received from 1 January 2027.
Brazil’s National Simplified Tax System Management Committee (CGSN) approved new changes to the regulations of the National Simplified Tax System on 14 August 2026, with the aim of adapting the system to changes introduced by the Consumption Tax Reform (RTC) and regulating the incorporation of IBS and CBS into the system.
Another relevant change is the elimination of the cash-basis accounting method for determining the monthly tax base of the Simples Nacional (Brazilian simplified tax regime).
Under the currently applicable rules, micro-enterprises and small businesses can choose to recognise revenues on a cash basis. In this case, for the monthly calculation of taxes, only the amounts actually received are considered. The accrual basis remains in use for other purposes, such as determining limits and sub-limits and classifying businesses within tax brackets.
With the new regulations, this possibility will no longer exist. The monthly calculation basis will instead correspond to the total monthly gross revenue earned, considered for the purposes of the Simples Nacional (Brazilian simplified tax regime), according to the new revenue recognition rules. The draft establishes that revenues from the sale of goods or rights and the provision of services are considered earned at the time of invoicing the transaction, generally linked to the issuance of the tax document that formalises it.
The change is accompanied by the repeal of the provisions of CGSN Resolution No. 140 of 2018, which currently govern the option and specific procedures for the cash-basis accounting method. These include paragraph 1 of Article 16 and Articles 19 and 20, as well as the subsection and Articles 77 and 78 relating to the recording of receivables.
In practice, it will no longer be possible to use the actual receipt of payment as the criterion for determining the monthly calculation basis for the Simples Nacional (Brazilian simplified tax regime). Thus, for instalment transactions, the time of incidence for calculation purposes will no longer depend on the financial inflow. Instead, it will be based on when the revenue is considered earned under the new invoicing rules.
The change follows the new rules introduced by the Consumption Tax Reform and, according to the effective date outlined in the draft, will take effect from 1 January 2027.
