With Brazil experiencing a technological tax revolution imposed by the Tax Reform, which will replace five current taxes with the CBS (Contribution on Goods and Services) and the IBS (Tax on Goods and Services), Brazilian software houses, companies developing enterprise management systems (ERPs), are facing a critical period of internal and fiscal restructuring in their platforms until early 2026, when the changes imposed by the government begin to be implemented.
Although the changes are scheduled to take effect from January 2026, more than 95% of these companies are not prepared, according to data from Avalara, a global fintech specializing in tax solutions. A new unified tax structure will simplify tax collection into a more straightforward system but will require significant adaptations in management and billing systems. This lack of preparation can cause serious problems for companies across various sectors, including niche companies, which rely on the solutions provided by these software developers, as they will not have access to updated tools that comply with the new requirements.
The lack of adaptation of these technology companies can end up compromising both their overall business and their clients, niche-specific companies. This is because organizations that are not adapted by the beginning of next year face a high risk of increased costs, loss of competitiveness, and financial management problems, which could lead to fines and expose them to possible inspections and investigations by the Federal Revenue Service.
"From a technological point of view, adapting systems in less than a year is nothing. The accounting and tax departments cannot wait for these changes. At Avalara, for example, we have already been working on mapping the new fields to be implemented and on the calculation engine because there is no more time. Those who haven't started updating are already quite behind," explains Meire Rustiguer, Tax Manager at Avalara, during theAvaCastpodcast with guests from the tax sector produced by the company.
To assist software house companies facing challenges in the fiscal and tax world, Avalara offers the programAvalara Included, which facilitates cloud integration with access to various functionalities within digital platforms, such as ERPs, e-commerce, billing, CRM, and marketplaces in a personalized manner. These integrations allow software houses to connect their systems with tax solutions efficiently, such as document collection and capture for tax calculation, online calculation engine, real-time messaging with the tax authorities that determine and deliver tax obligations. The system still allows calculating sales taxes with technology and automation, contributing to the correct application of taxes, avoiding errors and fines, providing more security and peace of mind for niche companies that use technology service providers.
Our idea is that the Avalara Included program serves as a strategic fiscal support for software houses. In addition to providing a complete cloud system infrastructure, it offers a comprehensive compliance circle so that software houses stay up-to-date with the latest updates, allowing niche companies to adapt quickly and securely within this year, without causing harm to their clients, concludes Luiz Sales, Head of Business Development at Avalara.
