The approval of the Tax Reform in Brazil, which unifies indirect taxes into a VAT (Value Added Tax) system, represents not only a historic simplification but also a unique opportunity for companies to integrate Artificial Intelligence (AI) into their tax operations. In this scenario, AI emerges as an essential tool to optimize processes, reduce costs, and democratize access to efficient tax management.
In a country where tax complexity can exceed 1,500 annual hours of compliance work per company, according to the World Bank, the combination of the new legislation and disruptive technologies promises to revolutionize costs, efficiency, and business strategies.
AI as a new business partner
With the rise of technology, companies are already beginning to use AI to revolutionize tax management. The benefits are wide-ranging and fall into three main areas:
- Automation and cost reduction: companies use AI to analyze legislative changes in seconds, reducing operational costs related to indirect taxes by up to 70%, according to research data from Thomson Reuters.
- Simulation and impact forecasting: predictive platforms using Machine Learning to calculate the reform’s impact across industries enable more assertive financial planning.
- Tax credit recovery: tools identify unused tax credits. AI can analyze a company’s tax records and identify overlooked credits, allowing for the recovery of significant financial resources.
Democratizing Tax Planning
Previously restricted to large corporations, tax planning solutions are now accessible to micro and small businesses. Cloud-based AI applications allow small merchants to monitor taxes in real time.
According to a PwC study, AI can reduce tax delinquency by up to 40%, ensuring greater compliance for small businesses and more efficient revenue collection for the government.
Implementation challenges
Despite the advantages, adopting AI in tax management faces some challenges:
- High implementation costs: some solutions may be costly, necessitating government incentive programs like BNDES’s “Indústria 4.0,” which subsidizes technology for small businesses;
- Lack of training: a CRC study revealed that 68% of Brazilian accountants still lack proficiency in data analysis tools, highlighting the need for specialized training;
- Data security: digitized tax management requires investments in cybersecurity to protect sensitive company and taxpayer information.
Technology and innovation for tax efficiency
The Tax Reform marks a new chapter in Brazil’s fiscal history, and with AI adoption, it will bring even greater economic and social benefits. Companies investing in this technology will not only reduce costs and risks but also gain a competitive edge.
Brazil now has the chance to overcome its reputation as a bureaucratic country and become a benchmark for intelligent tax management. The future of taxation has already begun, and AI is one of the keys to making it simpler, fairer, and more efficient for all.
