65% small businesses foresee impacts of the Tax Reform

Brazilian small businesses are preparing for significant changes with the Tax Reform. According to the Omie Small Business Survey, a recent Omie research study conducted by the cloud-based ERP platform Omie, involving 285 leaders of CNPJs opting for the Simples Nacional, among those surveyed (65% respondents), including CEOs, directors, partners, managers, and entrepreneurs, believe that the new rules will directly affect their businesses.

While 26% of respondents are unable to assess the impact of the reform, only 9% believe it will have no influence on their daily lives. For economist Felipe Beraldi, Head of Indicators and Economic Studies at Omie, the changes bring opportunities, but also challenges. Especially regarding understanding the alterations and the timelines for adaptation.

The research showed that 59% of business owners know that the main change will be the creation of the Value Added Tax (VAT) and the elimination of the cumulated taxation," explains Beraldi. The VAT aims to unify five taxes – ICMS, ISS, IPI, PIS, and Cofins – into a single collection, contributing to greater transparency and simplification of collection.

Despite the anticipated simplification, Beraldi warns that the process will be complex. "Companies need to begin preparing and adapting to the changes. The sooner they understand the new rules of the Reform, the easier it will be to re-evaluate cash flow, working capital, tax regime, supply chain, and prices," he states. 

The transition to the new tax system will be gradual. Implementation begins in 2026 and continues until 2033, when the Tax Reform will be fully in effect. During this period, there will be a coexistence regime between the current system and the new one, requiring attention from managers and their accountants. 

"While the reform promises to simplify tax management in the long term and reduce distortions, in the short term, this duplication will undoubtedly lead to a significant increase in complexity, requiring substantial changes to internal processes for any business, especially small companies," says Marcelo Lombardo, co-founder and CEO of Omie.

Beyond the challenges, the reform can represent a significant opportunity for accounting professionals, whose roles become even more strategic during the implementation of the new regulations. Not coincidentally, the research revealed that 75% of small businesses consider the accountant to be essential during this time. The research also reinforces the need for more effective communication, to ensure that the reform updates reach entrepreneurs clearly and quickly.

With the Tax Reform in effect, small businesses, representing 99.1% of Brazilian companies and responsible for over 70.1% of GDP and over 27.1% of formal employment, will face a challenging period of adaptation. The success of this transition will largely depend on the SMEs' ability to adapt to the new rules and the strategic guidance provided by accountants.

65% small businesses foresee impacts of the Tax Reform