Tax Reform 2026: What Technology Companies Need to Do Now?

2026 is not a year for watching. It's a year for action. The Tax Reform on consumption officially began on January 1st, and technology companies are at the center of the changes. If you have a consulting firm, development, SaaS, or any IT model, what happens now directly affects how you operate, price, and grow in the coming years.

This is not just another generic article about the reform. It's a practical guide on what matters for those who work with technology, with real numbers, critical deadlines, and concrete actions.

5 Taxes Become 2

The essence of the reform is clear: five complex consumption taxes will be replaced by two new taxes based on the VAT (Value Added Tax) model. PIS, COFINS, and IPI become CBS (federal). ICMS and ISS become IBS (state and municipal). Together they form the Dual VAT.

The promise is simplification and the end of cascading taxation. In theory, it makes sense. In practice, the transition demands preparation.

Timeline:

• 2026: Testing (symbolic rates of 0.9% CBS + 0.1% IBS)
• 2027: CBS begins (PIS/COFINS end)
• 2029-2033: IBS gradually replaces ICMS and ISS
• 2033: Full system

Seven years of transition. But the decisions you make now define how your company navigates this period.

What changes in 2026

Since January 1st, companies outside the Simples Nacional must issue invoices with CBS and IBS highlighted. This does not increase your tax burden now — the amounts are offset against PIS/COFINS. But your ERP needs to be ready. A rejected invoice means blocked billing.

The Federal Revenue Service waived penalties until April, but February is the month to validate whether your system works. ERP vendors are overwhelmed. Those who leave it until May face long queues and the risk of entering 2027 with unprepared systems.

From July onwards, individuals who are regular CBS and IBS taxpayers will need a CNPJ. If you have a business model with many independent contractors providing services, pay attention

From 8.65% to 28% and what does that mean?

IT companies pay an average of 8.65% in taxes on services today (ISS + PIS + COFINS). With the Dual VAT, the estimated nominal rate will be between 25% and 28%. It sounds brutal. And it might be, depending on your model.

But the math isn't that straightforward. The big difference is the end of cumulative taxation. Under the current model, you pay tax on tax. Under the Dual VAT, each step pays only on the added value. And you earn credits on cloud computing, software, licenses, hardware, internet, telecom, rent, and infrastructure.

The problem? Payroll does not generate credit. And technology companies have 60% to 80% of their costs in personnel. Labor-intensive companies — consulting firms, developers, startups, SaaS — will have little room to offset.

Practical example: A consulting firm billing R$ 100k/month, spending R$ 70k on payroll (no credit) and R$ 15k on cloud/software/infrastructure (credit of ~R$ 4,200), will have an effective burden close to 23%, not the nominal 28%, but well above the current 8.65%.

This changes pricing, margins, and competitiveness. Do the math with your accountant. Now.

Split Payment: The most disruptive change

If the rate is alarming, Split Payment is destabilizing. This mechanism completely changes cash flow. When the client pays, the banking system automatically separates the tax amount and transfers it directly to the government. You never receive the tax money.

Today, a company that sells for R$ 100 with R$ 28 in taxes receives R$ 128 and has 30 days to remit to the tax authority. With Split Payment, you receive R$ 100. The R$ 28 goes directly to the government.

The Peer Consulting firm estimates that just the ten largest retailers will transfer R$ 12 billion annually to the government due to Split Payment. For IT companies with recurring revenue — SaaS, subscriptions, long contracts — the impact is direct. If you count on 30 or 60 days of "breathing room" between receiving payment and paying taxes, that buffer disappears.

Split Payment begins in testing in 2026, will be optional for B2B from 2027, and mandatory between 2029 and 2033. You have time. But preparation requires advance planning. Reviewing cash flow and ensuring your ERP integrates with payment methods is not done in a week.

Simples Nacional: stay, leave, or hybrid?

If you are in the Simples Nacional, you have until September 2026 to decide: stay in the traditional Simples, migrate to the Simples Híbrido (new in 2027), or move to Lucro Real/Presumido.

Simples Nacional continues. In 2026, nothing changes. But in 2027, Simples companies will highlight IBS and CBS on invoices. And the Simples Híbrido emerges: you keep ISS, IRPJ, CSLL in the simplified regime, but calculate IBS and CBS separately. This allows you to use credits without losing Simples benefits.

When does the Simples Híbrido make sense?

• Revenue close to the ceiling (R$ 4.8 million)
• High spending on cloud, software, hardware
• Few CLT employees
• Serves businesses (B2B)

When does the traditional Simples make sense?

• Revenue below R$ 1 million
• Few taxable inputs
• High payroll
• Serves end consumers (B2C)

There's no universal answer. Run real simulations across three scenarios with your accountant. Compare effective tax burden, operating cost, and complexity. Decide based on data, not guesswork.

ERP: The silent risk

Everyone talks about tax rates. Few talk about systems. But a wrong invoice means blocked billing. And an outdated ERP means wrong invoices.

Electronic invoices now require new fields for IBS and CBS. If your system doesn't issue these fields correctly, the invoice is rejected. The client doesn't receive the document. You don't bill. Operations halt.

Furthermore, the system needs to integrate with the tax authority's calculation engine, calculate IBS and CBS per transaction, automatically generate credits, and integrate with payment methods for Split Payment. This is not a routine update. It's a deep restructuring.

If you use a commercial ERP, contact your vendor now. Ask when the update will be available, how much it costs, and what the timeline is. If you use an in-house or legacy system, plan the migration. You can't arrive in November discovering your system doesn't work.

How we can help you: Taking has 20 years of experience in Oracle implementations (NetSuite, Fusion, E-Business Suite). We know the challenges of fiscal adjustments and use structured methodologies (OUM, SuiteSuccess) to ensure on-time go-live,

How you can still prepare

Enough theory. Here's what you need to do in the coming days:

1. Meet with your accountantBring billing numbers, payroll, and cloud/software/infrastructure spending. Request simulations across three scenarios: traditional Simples, Simples Híbrido, and Lucro Real/Presumido. Compare effective tax burden. Decide based on your numbers, not on "what someone else said".
2. Validate your ERPConfirm it is issuing invoices with IBS and CBS fields. If not, contact the vendor and set a deadline. If the deadline is "we don't know yet", consider switching. Fiscal systems are no place for improvisation.
3. Review your cash flowSimulate what happens if you stop receiving the tax money. Does it affect working capital? Does it require renegotiating payment terms? Does it demand a credit line? Better to find out now than in 2027.
4. Set a date to decide on your tax regimeIf you are in Simples Nacional, don't leave it until August. September is the final deadline, but you need time to implement changes, review contracts, and adjust processes.

The Reform Demands Seriousness

The Tax Reform will not break technology companies. But lack of preparation will. The difference between thriving and suffering lies in how you use 2026. Those who treat this as tedious bureaucracy will face chaos in 2027. Those who treat it as a strategic decision will come out ahead.

You can't avoid the reform. But you can choose how to navigate it. With planning, prepared systems, and data-driven decisions, your company doesn't just survive — it positions itself better than a paralyzed competitor.

And if you need help, Taking is here. Twenty years implementing Oracle solutions. Expertise in fiscal adjustments. Methodologies that work. And the conviction that technology only delivers value when it walks alongside method and purpose.

#letsgo

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