There is less than a year left for companies to adapt to tax reform. Regulated last January, the new rules will come into effect in January 2026. Implementation will be progressive and should be completed in 2033. This represents an extra complexity: until then, it will be necessary to coexist with two current models – the current one and the new one. Which also requires preparation.
“Time is running out, and the turnaround to a new tax era in Brazil is closer than many imagine,” warns tax specialist Lucas Ribeiro, CEO of ROIT, an artificial intelligence company for accounting, tax and financial management in organizations. Ribeiro has been directly involved in debates and the construction of tax reform since 2019. In 2023 and 2024, he acted as a speaker at public hearings in the National Congress, pointing out potentialities and bottlenecks, in addition to directly advising senators and deputies.
“It’s like a giant clock counting down in all companies in Brazil. With less than a year to fully adapt, companies from all sectors need to face one of the most transformative reforms in Brazilian history. And, as in every race against time, those who are prepared come out ahead and win,” he reiterates.
The approval of the tax reform brought profound changes to the tax system, consolidating taxes, changing rates and introducing new concepts such as dual VAT and split payment. VAT – Value Added Tax – is dual because it consists of two taxes: Tax on Goods and Services (IBS) and Contribution on Goods and Services (CBS). Split payment will be an instrument for collecting taxes at the time of financial settlement, linking the invoice key with the payment key, and vice versa.
But the transition is not just a matter of calculation, warns tax specialist Lucas Ribeiro, CEO of ROIT, an artificial intelligence company for accounting, tax and financial management. Ribeiro has been following and participating in public debates on tax reform since 2019. “The transition to the new tax era is a multidimensional challenge that requires reorganization of processes, adjustments to systems and, above all, a strategic vision of the impact on business.”
The expert adds: “Companies that do not act in time run the risk of losing competitiveness and facing serious financial losses. This is a time when knowledge and technology become indispensable weapons,” warns Lucas Ribeiro, tax specialist and CEO of ROIT.
Adapting to the reform involves several critical fronts, explains Ribeiro. They are:
- Contract review and renegotiation with suppliers: How will the costs be passed on?
- Price and profit margin review: The new taxation directly impacts the pricing of products and services.
- Improvement of control systems: Companies need tools that integrate tax, financial and logistical data in an accurate and automated way.
- Team training: A well-informed and prepared team can make all the difference in the transition to the new model.
Why is the deadline so critical?
The deadline seems short because it is. Even though the reform will only come into full effect in 2026, the transition phase requires adaptations as early as 2025. “In practice, companies have 2025 to adjust their operations and prepare for the consolidation of the rules. It is not just about complying with the law, but also about adjusting strategies to survive in this new environment,” reinforces Ribeiro.
And here's the biggest mistake many are making:ignore the details.It is common to see companies believing that they simply need to adapt their accounting systems or follow what their competitors are doing. However, each sector and each business model has particularities that require detailed analyses and customized actions.
Technology as an ally
With the complexity of the changes, technologies based on artificial intelligence, such as those developed by ROIT, are gaining prominence. Tools such as the Tax Reform Calculator allow for accurate simulations, real-time impact analysis and even suggestions for best market practices.
According to Ribeiro, “the difference is not simply calculating the new tax rate, but guiding companies in interpreting the data for strategic decision-making. The reform is not just a challenge; it can be an opportunity to boost business.”
And the future?
For the expert, the year 2025 will be “decisive” in defining “winners and losers in the new tax era”. Companies that anticipate and master the numbers will be better prepared to face the changes, he emphasizes. Those who leave it until the last minute, believing that the adaptations will be simple, may find themselves in a scenario of losses and lack of competitiveness. “Therefore, if your company has not yet started preparing, the time is now. The clock is ticking, and the future of your organization may depend on the decisions made today”.
