This blog was last updated on September 2, 2025

There are many challenges of the Tax Reform for companies. The recently approved reform seeks to modernize and simplify the country’s complex taxation system, replacing several taxes with new taxes, such as the Goods and Services Tax(IBS) and the Contribution on Goods and Services (CBS).

Despite promises of efficiency and reduced red tape, companies will face significant challenges during the transition period, and will have to adapt to a schedule specific implementation schedule.

1. Adaptation of internal systems and processes

The change in the tax model requires companies to adjust their ERP, financial and tax management systems to adapt to the new rules. This includes adjustments to the issuance of electronic tax documents, new tax rates, and tax calculations.

Companies that use systems such as SAP will need to implement automated solutions to ensure the correct collection of new taxes and avoid risks of non-compliance.

2. Complexity in the transition and overlapping of taxes

During the transition phase, the old and new tax systems will co-exist. Companies will need to calculate and collect taxes under both regimes, which greatly increases the administrative burden and the likelihood of errors. The lack of clarity in the transition rules also hampers financial planning and tax compliance.

3. Impact on cash flow

Changes in the collection system can directly affect companies’ cash flow. In the new model, taxes will be collected differently, which may create gaps between the payment of taxes and the receipt of revenues, impacting the liquidity of organizations.

Companies with low margins may struggle to maintain financial health during the transition.

4. New ancillary obligations and oversight

Despite the simplification objective, the reform may bring new ancillary obligations, such as specific declarations and reports to prove the correct calculation of taxes. In addition, the inspection may become more rigorous, with greater use of technology by the tax authorities to identify inconsistencies much more quickly, since one of the forms of collection promises to be “on time”.

Companies will need reliable systems to ensure correct compliance with these obligations and avoid penalties.

5. Training and continuous updating of teams

With the new rules, tax and tax professionals will need training to adapt to the requirements of the new system. This includes everything from understanding the new rates to the use of automated systems for calculating and collecting taxes.

Companies that invest in team training will be better prepared to face the challenges of reform.

6. Search for technological partners with regulatory knowledge

Faced with the complexities of tax reform, the search for specialized technological partners becomes essential. Companies need to rely on solutions that not only automate tax management, but that also guarantee full compliance with constantly changing legislation.

Partnering with providers that have deep regulatory knowledge can be a strategic differential, as it allows us to anticipate changes, adapt processes quickly, and avoid legal and financial risks. Solutions that offer continuous updating, integration with ERPs, and specialized support are fundamental to ensure a safe and efficient transition to the new tax model.

How Sovos helps companies adapt to the Tax Reform

Sovos offers advanced technological solutions to assist companies in adapting to the new tax model. With tax automation and compliance systems integrated with the main ERPs in the market, Sovos allows:

• Automated tax management, ensuring the correct calculation and collection of IBS and CBS.
• Highly specialized solutions, such as Tax rules, which allow the determination and calculation of taxes automated in real time, with rules updated daily by a team of tax specialists and integrated into your ERP.
• Continuous updating according to regulatory changes, considerably minimizing the risks of non-compliance.
• Automatic generation and delivery of ancillary obligations, avoiding rework and penalties.
• Integration with ERPs such as SAP, making it easier to adapt to new requirements.
• Real-time monitoring, allowing strategic management of the impacts of tax reform.
• Highly trained staff: on tax and compliance issues.

With a specialized team and a global presence, Sovos is prepared to support companies in complying with the new tax requirements, ensuring efficiency and security in the new Brazilian tax scene.

Do you want to know more? Let’s talk!