Less than a year is left for companies to comply with the tax reform. Regulated in January last, the new rules will come into effect in January 2026. The implementation will be gradual and must be completed by 2033. This represents an extra complexity: until then, it will be necessary to live with two existing models – the current and the new. This also requires preparation.
“Time is running out, and the transition to a new tax era in Brazil is closer than many imagine,” warns tax lawyer Lucas Ribeiro, CEO of ROIT, an artificial intelligence company for the accounting, tax, and financial management of organizations. Ribeiro has been directly involved in discussions and the construction of the tax reform since 2019. In 2023 and 2024, he acted as a speaker in public hearings in the National Congress, pointing out potentials and bottlenecks, as well as directly advising senators and deputies.
“It’s like a giant clock counting down in all companies in Brazil. With less than a year for total compliance, companies from all sectors need to face one of the most transformative reforms in Brazilian history. And, as in any race against time, the prepared ones go ahead and win,” he reiterates.
The approval of the tax reform brought profound changes in the tax system, consolidating taxes, changing rates, and introducing new concepts such as the dual VAT and split payment. The 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). The split payment will be a tool for collecting taxes already in financial settlement, linking the key of the invoice with the key of the payment, and vice versa.
But the transition is not just a matter of calculation, warns tax expert 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 process reorganization, adjustments in systems, and, above all, a strategic vision of the impact on businesses”.
The specialist adds: “Companies that do not move in time run the risk of losing competitiveness and facing serious financial losses. This is a moment where knowledge and technology become indispensable weapons”, warns Lucas Ribeiro, tax expert and CEO of ROIT.
Adapting to the reform involves various critical fronts, explains Ribeiro. They are:
- Contract review and renegotiation with suppliers: How will costs be transferred?
- Price and profit margin review: The new taxation directly impacts the pricing of products and services.
- Enhancement of control systems: Companies need tools that integrate fiscal, financial, and logistical data accurately and automatically.
- Team training: A well-informed and prepared team can make all the difference in transitioning 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 adjustment already in 2025. “Companies practically have until 2025 to adjust their operations and prepare for the consolidation of the rules. It’s not just about complying with the law, but about adjusting strategies to survive in this new environment,” Ribeiro reinforces.
And here is the biggest mistake that many are making: ignoring the details. It is common to see companies believing that simply adapting their accounting systems or following what competitors are doing is enough. However, each sector, each business model has specificities that require detailed analysis and customized actions.
Technology as an ally
With the complexity of the changes, technologies based on artificial intelligence, like those developed by ROIT, gain prominence. Tools such as the Tax Reform Calculator allow precise simulations, real-time impact analysis, and even suggestions for best market practices.
According to Ribeiro, “the differentiator is not just calculating the new 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 leverage businesses.”
And the future?
For the specialist, 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 more prepared to face the changes, he emphasizes. Those who procrastinate, believing that adaptations will be simple, may encounter a scenario of losses and lack of competitiveness. “Therefore, if your company has not yet started to prepare, the time is now. The clock is ticking, and the future of your organization may depend on the decisions made today”.
