There is less than a year left for companies to comply with the tax reform. Regulated last January, the new rules will take effect in January 2026. The implementation will be gradual and should be completed by 2033. This represents an extra layer of complexity: until then, companies will need to coexist with two active models—the current one and the new one. This also requires preparation.
“Time is running out, and the shift to a new tax era in Brazil is closer than many realize,” warns tax expert Lucas Ribeiro, CEO of ROIT, an artificial intelligence company for accounting, tax, and financial management of organizations. Ribeiro has been directly involved in debates and the construction of the tax reform since 2019. In 2023 and 2024, he acted as a speaker in public hearings at the National Congress, highlighting potential benefits and bottlenecks, as well as advising senators and deputies directly.
“It’s like a giant clock counting down in every company in Brazil. With less than a year for full compliance, businesses across all sectors must face one of the most transformative reforms in Brazilian history. And, as in every race against time, those who are prepared get ahead and win,” he reiterates.
The approval of the tax reform brought profound changes to the tax system, consolidating taxes, adjusting rates, and introducing new concepts such as dual VAT and split payment. VAT—Value Added Tax—is dual because it consists of two taxes: the Tax on Goods and Services (IBS) and the Contribution on Goods and Services (CBS). Meanwhile, split payment will be a tool for tax collection at the financial settlement stage, linking the invoice key with the payment key, 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 monitoring and participating in public debates about the tax reform since 2019. “The transition to the new tax era is a multidimensional challenge that requires process reorganization, system adjustments, and, above all, a strategic vision of the impact on businesses.”
The expert adds: “Companies that do not act in time risk losing competitiveness and facing serious financial losses. This is a moment when knowledge and technology become indispensable weapons,” warns Lucas Ribeiro, tax expert and CEO of ROIT.
Compliance with the reform involves several critical fronts, explains Ribeiro. They are:
- Contract review and supplier renegotiation: How will costs be passed on?
- 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 tax, 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 fully take effect in 2026, the transition phase requires compliance as early as 2025. “In practice, companies have 2025 to adjust their operations and prepare for the consolidation of the rules. It’s not just about complying with the law but adapting strategies to survive in this new environment,” Ribeiro emphasizes.
And here’s the biggest mistake many are making:ignoring the details.It’s 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 particularities that require detailed analysis and customized actions.
Technology as an ally
Given the complexity of the changes, technologies based on artificial intelligence, like those developed by ROIT, are taking center stage. Tools such as the Tax Reform Calculator enable precise simulations, real-time impact analysis, and even suggestions for best market practices.
According to Ribeiro, “the difference lies not just in calculating the new tax rate but in guiding companies in interpreting 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 expert, 2025 will be “decisive” in determining “winners and losers in the new tax era.” Companies that anticipate and master the numbers will be better prepared to face the changes, he stresses. Those who leave it to the last minute, believing the adaptations will be simple, may face a scenario of losses and lack of competitiveness. “Therefore, if your company hasn’t started preparing yet, the time is now. The clock is ticking, and the future of your organization may depend on the decisions made today.”
