Individual Microentrepreneurs (MEIs) and Micro and Small Enterprises (MPEs) have until January 31 to settle their pending issues with the Federal Revenue Service and avoid exclusion from Simples Nacional. This special regime offers reduced tax burden and is one of the main tax payment methods for small entrepreneurs in Brazil.
According to Fernando José, accounting leader at Agilize, “those who do not regularize by 01/31 will only be able to rejoin both MEI and Simples Nacional in January 2026. Additionally, the other option for those who fail to meet the deadline is to resolve pending issues, cancel the CNPJ, and open a new company under Simples Nacional.”
Consequences of exclusion from Simples Nacional
For MEIs, exclusion means no longer paying the fixed monthly amount and instead collecting taxes based on revenue, which can increase the tax burden to an average between 13.33% and 16.33%. “In short, the main disadvantage is the increase in tax burden,” emphasizes Fernando José. Additionally, the entrepreneur also faces more tax obligations and may encounter operational difficulties.
For MPEs, the impact is equally significant. “When excluded, companies move to the standard regime, which means paying more taxes compared to Simples Nacional. Moreover, the number of obligations that need to be fulfilled with the tax authorities also increases,” he explains.
Option for those who miss the deadline
Entrepreneurs who fail to settle pending issues by the deadline have the option to cancel their CNPJ and register a new one under Simples Nacional. “However, it is necessary to settle debts before canceling the CNPJ, as debts may be linked to the entrepreneur’s CPF,” warns Fernando José.
Issuing invoices during the exclusion period
Even companies that negotiate debts and resolve pending registration issues may face difficulties during the exclusion period. However, Fernando José clarifies that invoice issuance will not be interrupted: “Invoice issuance continues normally. The ideal is to partner with an accounting firm to manage taxation during the exclusion period, as close work is needed to avoid paying unnecessary taxes.”
To identify pending issues, it is necessary to access the Simples Nacional Portal and check the registration status under ‘Consulta Optantes,’ entering the CNPJ.
