The Tax Reform approved in 2023 represents one of the most profound transformations of the Brazilian tax system in recent decades.

The replacement of taxes such as PIS, Cofins, IPI, ICMS, and ISS with new levies—namely the IBS (Goods and Services Tax) and the CBS (Contribution on Goods and Services)—introduces a new tax framework, with direct impacts on the operations of companies of all sizes and sectors.

In light of this new scenario, an essential question arises: is your company truly prepared for the changes ahead?

Key aspects of the Tax Reform

The new taxation model, which will be implemented gradually through 2033, is based on structural pillars that require immediate attention from the business sector. Among the main points, we highlight

• Implementation of the Dual VAT (IBS and CBS): unification of consumption taxes under a single, non-cumulative rate. While the promise is greater simplicity and neutrality, the financial impact may vary by sector.
• End of the fiscal war among states and municipalities: taxation will occur at the destination of goods or services rather than at their origin, altering the logic of regional tax incentives.
• Cashback for low-income families: a mechanism for refunding part of the taxes paid by individuals in situations of social vulnerability.
• Creation of the Selective Tax (IS): levied on goods and services harmful to health and the environment, such as cigarettes and alcoholic beverages—potentially affecting specific sectors.
• Complex transition: current and new rules will coexist for nearly a decade, requiring parallel controls and the restructuring of internal processes.

What does your company need to do now?

Even though full implementation is scheduled for the coming years, tax planning must begin immediately. Recommended actions include:

• Mapping risks and opportunities: understanding how the new system will affect your tax burden and operations.
• Reviewing contracts and pricing: many agreements will need to be adapted to the new tax structure.
• Adjusting systems and processes: electronic tax bookkeeping and ERP systems must be updated to meet new requirements.
• Training teams: tax, accounting, and legal departments must be aligned with the changes.
• Monitoring regulation: many aspects will still be defined through complementary laws and technical regulations.

How FFA Advogados can support your company

With more than 40 years of nationwide experience and a team specialized in Tax Law, FFA Advogados closely monitors legislative developments and the unfolding of the Tax Reform. Our goal is to provide clients with a strategic, practical, and secure perspective to navigate this new cycle with confidence.

In addition to technical opinions, FFA offers:

• Tailored diagnostics by sector and company size;
• Support in redesigning operational and tax models;
• Ongoing legislative monitoring;
• Training programs and lectures for internal teams.

Contact our team to learn how FFA can help your company anticipate and adapt to the new tax reality in Brazil.