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In the world · Entrepreneurship · 25 September 2026

Brazil's 2026 tax reform: what changes for MEI and Simples

In 2026, the IBS and CBS test does not apply to MEI or Simples. But there are 2027 choices due by 10/15 and 10/30/2026. Read and talk to your accountant.

bairogonzalez.com team, drawing on Bairo's story · Published

For individual microentrepreneurs (MEI) and for businesses under Simples Nacional (Brazil's simplified tax regime for small companies), 2026 is a year of preparation, not of new taxes. The test of the reform's new taxes, IBS and CBS, does not apply to them. But there are two decisions with set deadlines that apply to 2027: those who want to join Simples have until October 15, 2026, and those already in Simples who want to calculate IBS and CBS under the regular regime have until October 30, 2026. This text is general guidance: the right choice depends on each company's numbers and should be made with an accountant.

What happened

The consumption tax reform was regulated by Complementary Law No. 214, of 2025, later amended by Complementary Law No. 227, of 2026. It creates two taxes: IBS, which will replace ICMS and ISS, and CBS, which will replace PIS and Cofins. The switch is gradual.

In 2026, the test year, IBS is charged at a rate of 0.1% and CBS at 0.9%, amounts that can be offset against the PIS and Cofins owed. Three details matter for small business owners:

  • the test does not apply to Simples Nacional or to MEI, as Article 348 of the law provides;
  • for other companies, payment is waived for those who comply with the ancillary obligations, the required filings and records;
  • penalties under the new system only from 2027.

On September 25, 2026, the Simples Nacional Management Committee published CGSN Resolution No. 194, which reorganized the deadlines for the 2027 choices. According to the Federal Revenue Service and Agência Brasil:

  • by 10/15/2026: deadline to apply to join Simples Nacional effective in 2027;
  • by 10/30/2026: deadline for a Simples company to opt to calculate IBS and CBS under the regular regime, effective January 1, 2027.

What changes and what does not

Not changing now: the MEI keeps paying the fixed monthly amount through the DAS payment slip, and the Simples company remains in its own regime, with a single payment slip. In 2026, no IBS or CBS on the slip of those in these regimes.

Changing from 2027: the option of a so-called hybrid model appears. The company stays in Simples for the other taxes but calculates IBS and CBS under the regular regime. The possible advantage is generating credit for these taxes for customers that are also companies, which can make the small supplier more competitive. The possible disadvantage is more calculation work and, depending on the margin, more tax. That is why the choice is not automatic.

The general timeline: in 2027 and 2028, IBS stays at 0.1% and CBS takes full effect, minus 0.1 point. From 2029 to 2032, ICMS is reduced step by step. In 2033, the new system is complete.

Why it matters

For those who sell to the end consumer, the current regime is likely to keep making sense. For those who sell to other companies, the math may change, because the customer will look at the credit it receives on the purchase. Deciding without doing this math is risky both ways.

What to do by the end of October:

  1. Talk to your accountant now, not in the last week. Ask for a simulation of both scenarios with your real numbers.
  2. Map who your customers are: individuals or companies, and how much each group weighs in revenue.
  3. Check that your ancillary obligations are up to date, because the payment waiver in the test year for those outside Simples depends on them.
  4. Note the deadlines: 10/15 and 10/30/2026. And follow Federal Revenue Service news, which may bring adjustments.

In Bairo's view

For Bairo Leandro Gonzalez Martinez, a new rule is less frightening when a person understands its size. He says he built businesses without knowing everything and learned, often in a hurry, what he did not know. In his reading, learning on your own has limits: taxes are the kind of subject where it pays to hire someone who knows. The Seventh Attempt Method proposes exactly this in the step of learning what you do not know: recognize the gap and find someone who fills it.

Where this meets the ecosystem

CLAIN, an orchestrator of artificial intelligence agents, proposes to help small business owners organize data, deadlines and questions before the conversation with their accountant, without replacing them. CEASA Bank, an agribusiness financial platform, looks at the small suppliers of the wholesale supply centers, many of them in Simples, for whom the reform will weigh on their relationship with buyers. These are proposals and vision, not tax advice.

Sources

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