Choose Tax Reform and AI: opportunities for efficiency and growth in Brazil

The approval of the Tax Reform in Brazil, which unifies indirect taxes in a VAT (Value Added Tax) system, represents, in addition to a historical simplification, a unique opportunity for companies to integrate Artificial Intelligence (AI) in 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 per company in compliance, according to the World Bank, the combination of new legislation and disruptive technologies promises to revolutionize costs, agility 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 and are divided into three main fronts:

• Automation and cost reduction: companies use AI to analyze legislative changes in seconds, reducing by up to 70% the operating cost related to indirect taxes, according to research data conducted by Thomson Reuters.
• Impact simulation and predictionpredictive platforms that use Machine Learning to calculate the impact of reform on different sectors allow more assertive financial planning.
• Tax credit recovery: tools identify unused tax credits. AI can analyze a company's tax records and identify credits neglected in the past, enabling the recovery of significant financial resources.

Democratizing Tax Planning

Once restricted to large corporations, tax planning solutions are now accessible to micro and small entrepreneurs. AI applications in the cloud allow small merchants to monitor taxes in real time.

According to a PwC study, AI can reduce tax defaults by up to 40%, ensuring greater regularity for small businesses and more efficient collection for the government.

The implementation challenges

Despite the advantages, the adoption of AI in tax management faces some challenges:

• High implementation cost: some solutions can be costly, making government incentive initiatives necessary, such as the BNDES “Industry 4.0” program, which subsidizes technology for small businesses;
• Lack of capacity building: a CRC study revealed that 68% of Brazilian accountants have not yet mastered data analysis tools, indicating the need for specialized training;
• Data securitydigitized tax management requires cybersecurity investments to protect sensitive information from businesses and taxpayers.

Technology and innovation for tax efficiency

The Tax Reform marks a new chapter in the fiscal history of Brazil, and with the adoption of AI, it will bring even more economic and social gains. Companies that invest in this technology will not only reduce costs and risks, but also gain a competitive advantage.

Brazil now has the chance to surpass its reputation as a country of bureaucracy and become a benchmark in smart 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 everyone.