Small businesses in Brazil must act within weeks to decide whether to adopt the simplified tax system for 2027 and choose how to handle two new consumption taxes. The September deadline represents the first major scheduling change to the regime since the consumption tax reform took effect.
Brazil’s tax authority, the Federal Revenue Service (RFB) announced on 1 September 2026 that small and micro-enterprises face a critical decision window through 30 September 2026.
Companies must finalise their position on the Simplified National Tax System tax regime for 2027 and select how to handle two new consumption taxes: the Contribution on Goods and Services (CBS) and the Tax on Goods and Services (IBS).
This marks a significant scheduling shift, as enrollment deadlines have moved from January to September of the prior year due to adaptations to consumption tax reform.
Two paths in September
The action required depends on each company’s current tax status.
Companies not yet in the Simplified National Tax System (Simples Nacional) but wanting to join in 2027 must file their application between 1 and 30 September 2026. Approval means the change takes effect from 1 January 2027. The Federal Revenue Service advises verifying that no outstanding tax or registration problems exist before applying.
For firms already enrolled in the simplified national tax system, no action is needed to maintain enrollment unless they have a scheduled exclusion on file. However, these companies face a separate decision: whether to keep CBS and IBS taxes bundled into the simplified national tax system’s single payment slip or remove them and pay these two taxes under the standard regime.
Withdrawal and special cases
Companies regretting either choice have until 30 November 2026 to cancel their decisions. Individual microentrepreneurs (MEI) operate under different rules: their January enrollment deadline remains unchanged, and no CBS/IBS regime choice exists for them.
New registrations between 1 October and 31 December 2026 receive special treatment, with their selected tax regime covering both the remainder of 2026 and all of 2027.
The Federal Revenue Service emphasises that the CBS and IBS selection carries operational weight, affecting cash flow, vendor relationships, supply chain credits, and overall business strategy.
The simplified national tax system variants explained
The consumption tax reform introduces a new configuration choice.
Under the “pure” Simplified National Tax System, all taxes, including the new CBS and IBS, remain in the unified payment. This option becomes automatic if companies take no action by the September deadline.
The “hybrid” model allows firms to stay in the Simplified National Tax System for other taxes while calculating CBS and IBS separately under regular collection rules. This structure benefits companies conducting business-to-business transactions where clients need expanded tax credit access.
The decision applies to the first half of 2027, with another selection window opening in March 2027 for the second half.
