Tax reform is reshaping how companies determine acquisition costs, prioritizing tax credits over nominal prices.
The ongoing Tax Reform in Brazil is fundamentally redefining the dynamics of commercial negotiations. For decades, comparisons between suppliers were predominantly based on the presented price.
However, with the introduction of the Contribution on Goods and Services (CBS) and the Tax on Goods and Services (IBS), this practice is being drastically altered.
Taxation, now explicitly detailed in fiscal documents, is giving way to a new cost metric: tax credits. Companies, under the new regulations, will be able to claim tax credits for IBS and CBS generated from their acquisitions of goods and services.
The New Landscape of Costs and Tax Credits
This shift means that proposals with different nominal prices may, in practice, result in distinct effective costs. A supplier with a seemingly lower selling price might actually offer fewer tax credits.
Conversely, an initially higher offer could become more economically advantageous after tax credits are applied.
Therefore, the cost analysis of an acquisition now goes beyond a mere comparison of price, term, and payment conditions. It encompasses the complex web of tax credits that can be recovered.
Strategic Decisions and the Simples Nacional
The transition already demands concrete decisions from companies. Starting September 2026, micro and small businesses will have the option to join a hybrid model.
They can continue under the Simples Nacional regime for most taxes but pay IBS and CBS separately, under the general regime.
This alternative, known as the hybrid model, allows for broader tax credit utilization by these companies’ customers in B2B relationships.
The choice made by September 30, 2026, will impact results starting from the first half of 2027.
Split Payment and the Integration of Operational Dynamics
Another crucial element of this new system is split payment. This mechanism will segregate amounts related to IBS and CBS during the financial settlement of transactions.
Its implementation will be gradual, with a potential start in transactions where the buyer is under the regular regime.
As the new system links credit appropriation to the actual payment of taxes, the stages of payment, collection, and crediting become intrinsically linked.
This new operational dynamic requires adaptation in day-to-day commercial decisions, from purchases and contracts to broader negotiations.
As the implementation schedule for IBS and CBS advances, understanding the true cost of an acquisition will inevitably involve a detailed analysis not only of the billed amount but also of the tax implications associated with each transaction.
