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April 22, 2025
What will be the impacts of the Tax Reform on technology and how should your company prepare?
In this edition, the focus was on the impacts of tax reform on technology and on how companies can adapt. | Read more here.

Sovos

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Sovos

This blog was last updated on August 25, 2025

The webinar series “Navigating Tax Reform”, promoted by Sovos Brazil, has been an essential space for understanding the various layers of impacts of the reform on the corporate environment.

In this edition, “Impacts on Technology”, the focus was on the impacts of tax reform on technological systems and processes and on how companies can adapt efficiently and intelligently to this new reality.

The biggest transformation of the Brazilian tax system

The Tax Reform represents the biggest change in the business environment since the Constitution of 1988 and the implementation of the Real Plan. And its impact goes far beyond the tax area: it requires an in-depth review of the companies’ technological infrastructure.

The complexity of this transition will require structural changes, data integration, automation and a new role for the Technology and Tax areas.

Starting in 2026, with the progressive implementation of the new system, it will be necessary to operate with two parallel tax regimes: the current one and the new model based on VAT (Value Added Tax), until the complete transition in 2033.

IT and Tax as protagonists of compliance

Historically viewed as support areas, technology, and tributes now occupy the center of business strategy. With the new model, compliance becomes an online and real-time process.

The issuance of banknotes, the calculation of taxes and the transmission of data to the tax authorities will take place simultaneously with the commercial operation, in other words, unavailable systems mean not only loss of revenue, but also tax non-compliance.

In this context, ERP and tax systems need to be prepared to:

  • Calculate taxes based on net and gross price;
  • Operate with multiple tax rate percentages (such as CBS, IBS, and sectoral taxes);
  • Transmit XMLs with new fields and mandatory events;
  • Deal with different rules for origin and destination;
  • And, above all, ensure data integrity, traceability, and consistency.

 The end of the fiscal task: the emergence of the strategic analyst

 The new reality requires a change of mindset. The Tax professional must stop being the “taskmaster” who updates rules manually and start acting as a strategic analyst, capable of translating tax regulations into technical requirements and contributing insights for purchases, sales, logistics and finance.

This will only be possible with:

  • Process automation;
  • Centralization of tax rules on a single platform;
  • Use of standard solutions, with digital convergence and native integration with ERPs;
  • And, increasingly, with the adoption of cloud technology (cloud native) with scalable architecture, APIs and centralized management.

Sovos: technology + tax content in a single solution

Sovos is facing this challenge and has been preparing before the enactment of the Constitutional Amendment. Its proposal is clear: to combine robust technology with updated tax content on a single platform.

With solutions for determining and calculating taxes automated in real time and integrated into their ERP, already adapted to the new model, Sovos allows companies to:

  • Correctly calculate current and new taxes (CBS, IBS, and IS);
  • Operate with two tax systems simultaneously without major parameterizations for this purpose;
  • Update rules automatically based on official publications;
  • Automate the fulfillment of ancillary obligations through native messaging;
  • Reduce errors, rework, and time spent on audits;
  • And move towards a predictive compliance model, with real-time dashboards and tax impact simulations.

A call to action: modernize now!

According to studies cited in the webinar, only 1/3 of Brazilian companies feel ready for the Reform, and 50% still calculate critical taxes manually, exposing themselves to much more risks of error.

It is urgent to accelerate digital transformation, to abandon spreadsheets and fragmented systems, and to adopt solutions that support the complexity and dynamism of the new tax landscape.

The Tax Reform is an opportunity to modernize, gain efficiency and strengthen the fiscal control of the operation. But time is short. It is essential to integrate Tax, IT and finance into a single strategic front to deal with this whirlwind of changes without more serious risks. Sovos is ready to partner with you on this journey. Shall we go together?

Do you want to know more? Watch the webinar on demand now!

Sovos
Sovos is a global provider of tax, compliance and trust solutions and services that enable businesses to navigate an increasingly regulated world with true confidence. Purpose-built for always-on compliance capabilities, our scalable IT-driven solutions meet the demands of an evolving and complex global regulatory landscape. Sovos’ cloud-based software platform provides an unparalleled level of integration with business applications and government compliance processes. More than 100,000 customers in 100+ countries – including half the Fortune 500 – trust Sovos for their compliance needs. Sovos annually processes more than three billion transactions across 19,000 global tax jurisdictions. Bolstered by a robust partner program more than 400 strong, Sovos brings to bear an unrivaled global network for companies across industries and geographies. Founded in 1979, Sovos has operations across the Americas and Europe, and is owned by Hg and TA Associates.
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