Effective 14 August 2026, the Brazilian Federal Revenue Service rescinded the option for microenterprises (ME) and small businesses (EPP) under the Simples Nacional to compute monthly profits using a cash‑based accounting method. Regulatory Resolution CGSN nº 140/2018, which previously permitted this alternative, is hereby revoked in favor of an accrual‑based approach that recognizes revenue at the moment of invoicing, irrespective of actual payment receipt. The change accompanies the broader Consumption Tax Reform (RTC) enacted by Law Complementar nº 214/2025, which mandates a uniform transaction‑oriented tax base across all federal tax regimes. The RFB stated that the move aims to eliminate distortions caused by timing differences between cash receipts and economic performance, thereby ensuring that the Simples Nacional tax burden more accurately reflects genuine value added by the enterprise. Taxpayers were granted a 30‑day adaptation period to adjust their accounting software and internal procedures before the new rule becomes enforceable on 15 September 2026.
Key Takeaways
- Mandatory accrual accounting: Profit determination for Simples Nacional must now follow the accrual principle, recognizing income when the NFS‑e Nacional (or other authorized invoice) is issued and expenses when the corresponding liability is incurred.
- Impact on tax liabilities: Businesses with significant receivables or delayed customer payments may experience higher monthly tax outlays, as revenue is taxed upon invoicing rather than upon collection.
- Compliance deadline: Taxpayers must update their accounting systems and train staff by 15 September 2026; after this date, cash‑based profit calculations will be rejected by the RFB’s validation engines, potentially leading to penalties and loss of Simples Nacional benefits.
Disclaimer:This article is compiled and summarized based on publicly available information and is for general information and academic exchange purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. For tax planning, please consult a qualified professional tax advisor or legal counsel.
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