A consumption tax reform, marks one of the most significant changes to the Brazilian tax system in recent decades. With the creation of the IBS and CBS, As a result, the country is moving towards a Dual VAT model, gradually replacing taxes such as PIS, Cofins, ICMS, ISS and IPI.
For Simples Nacional, However, the reform does not mean the end of the simplified regime. The central point is another: based on the new tax credit logic, the entrepreneur will have to decide whether to remain in the simplified regime. Pure National Simples or adopt the Hybrid Simples Nacional, collecting IBS and CBS outside the DAS.
This choice can affect price, competitiveness, margin, customer relations and the ability to sell to larger companies. In many cases, the tax decision will no longer just be an accounting one, but will become part of the business's commercial strategy.
Quick summary: difference between pure and hybrid Simples Nacional
- O Pure National Simples maintains the collection of IBS and CBS within the DAS, preserving operational simplicity. It tends to be more suitable for companies that sell mainly to the end consumer, such as restaurants, stores, clinics, gyms and B2C services, because this client does not take advantage of tax credits.
- O Hybrid Simples Nacional, On the other hand, it allows the company to remain in Simples, but collect IBS and CBS outside, following the logic of the regular regime. The main advantage is that it generates more attractive tax credits for business clients. For this reason, it tends to be more interesting for B2B companies, such as industries, wholesalers, technology companies, logistics and corporate service providers.
In practical terms: if your company sells to individuals, the pure Simples will probably be more efficient. If you sell to other companies that take advantage of IBS and CBS credits, the hybrid Simples can protect your competitiveness and avoid losing contracts after the tax reform.
What changes with the 2026 tax reform
A tax reform 2026 begins the transition phase to the new consumption tax model. LC 214/2025 establishes two new taxes: the CBS, of federal competence, and the IBS, This is a shared competence between states, municipalities and the Federal District.
IBS and CBS in Dual VAT
The new system adopts the so-called Dual VAT. This means that there will be two consumption taxes with a similar logic: the CBS at the federal level and the IBS at the sub-national level. Both seek to tax goods and services broadly, with an impact on economic transactions.
The proposal is to replace the current fragmented system with a more uniform structure, based on neutrality, transparency and non-cumulativeness. Instead of multiple rules per sector, municipality or state, the tendency is for the tax to follow the consumption operation in a more standardized way.
Complete Guide to
Tax reform
Taxation at destination and non-cumulativity
Another important point is taxation at destination. This means that tax collection tends to benefit the place where consumption takes place, and not necessarily where the supplier is located. This change reduces tax disputes between states and weakens the logic of regional benefits.
A non-cumulative is also gaining momentum. Companies subject to the regular regime will be able to appropriate CBS and IBS credits on purchases used in its activity, as long as the legal rules are observed. This directly changes the analysis of suppliers opting for Simples.
Gradual end of tax benefits by 2032
The reform foresees a gradual transition, with the current system and the new model coexisting until 2033. Tax benefits linked to the old system tend to be progressively reduced by 2032, which requires a review of tax planning, pricing and contracts.
Pure National Simples
O Simples Nacional pure is to remain with the simplified model, with IBS and CBS collected within the DAS. In this format, the company continues to prioritize operational simplicity, unified payment and lower administrative costs.
How it works with IBS and CBS
In the pure Simples Nacional, the subscriber maintains centralized payment. IBS and CBS are part of the DAS system, without the company being able to fully assess these taxes.
The main consequence is the generation of credits. When a Simples company sells to another company subject to the regular regime, the acquirer will only be able to receive credits in proportion to the amounts actually paid for IBS and CBS within Simples, and not at the full rate of the regular regime.
Advantages of pure Simples Nacional
The biggest advantage is simplicity. Entrepreneurs continue to have a less complex tax routine, lower compliance costs and more predictable calculation.
This model tends to be more interesting for B2C companies, such as restaurants, local businesses, clinics, beauty salons, gyms and businesses that sell mostly to end consumers. As the individual consumer doesn't benefit from tax credits, the credit limitation weighs less heavily on the purchasing decision.
Disadvantages and impact on credits
The disadvantage arises when the company sells to other companies. B2B customers can compare suppliers not only on price, but also on the tax credit generated by the purchase.
If a competitor does not Presumed Profit, If a supplier's credit for IBS and CBS is higher under the Real Profit system or the hybrid Simples system, the buyer may consider that supplier to be more economically advantageous, even with a similar nominal price. Therefore, pure Simples Nacional can reduce competitiveness in business chains.
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Simples taxes
Hybrid Simples Nacional
O Hybrid Simples Nacional is the possibility for the company to remain in Simples for part of the taxes, but pay IBS and CBS on the outside of the DAS, according to the regular system of these new taxes.
Detailed concept
In the hybrid regime, the company does not necessarily abandon Simples Nacional. It keeps the simplification for the taxes that remain within the regime, but starts treating IBS and CBS separately.
This creates a kind of bridge between the simplicity of Simples and the logic of full non-cumulativity of the new VAT. The company gains the capacity to generate more relevant credits for taxpaying clients, but assumes greater fiscal complexity.
How external collection works
In “outside” payment, IBS and CBS are no longer dealt with only within the DAS. The company now calculates debits and credits for these taxes according to the rules of the regular regime, highlighting amounts on tax documents and observing the applicable ancillary obligations.
This structure allows the buyer subject to the regular regime to take advantage of credits in a broader way, as long as the taxes have been correctly highlighted and collected. For B2B suppliers, this can be an important commercial differentiator.
Hybrid Simples Nacional
O Hybrid Simples Nacional is the possibility for the company to remain in Simples for part of the taxes, but pay IBS and CBS on the outside of the DAS, according to the regular system of these new taxes.
Detailed concept
In the hybrid regime, the company does not necessarily abandon the Simples Nacional. It maintains the simplification for taxes that remain within the regime, but now treats IBS and CBS separately.
This creates a kind of bridge between the simplicity of Simples and the logic of full non-cumulativity of the new VAT. The company gains the capacity to generate more relevant credits for taxpaying clients, but assumes greater fiscal complexity.
How external collection works
In “outside” payment, IBS and CBS are no longer dealt with only within the DAS. The company now calculates debits and credits for these taxes according to the rules of the regular regime, highlighting amounts on tax documents and observing the applicable ancillary obligations.
This structure allows the buyer subject to the regular regime to take advantage of credits in a broader way, as long as the taxes have been correctly highlighted and collected. For B2B suppliers, this can be an important commercial differentiator.
Comparative table: pure Simples Nacional vs. hybrid
| Criteria | Pure National Simples | Hybrid Simples Nacional |
|---|---|---|
| Tax burden | More predictable, concentrated in the DAS | May vary according to IBS and CBS debits and credits |
| Complexity | Less operational complexity | Greater fiscal, accounting and technological requirements |
| Generating credit | Credit limited to the amount of IBS and CBS paid under Simples | Full credit potential according to regular regime |
| Best nomination | B2C companies, retail, consumer services | B2B companies, industry, wholesale, technology and corporate services |
| Impact on the final price | Can be competitive for the end consumer | Can improve net cost for business customers |
| Fiscal management | Simpler and more predictable | Requires simulations, systems and technical support |
| Customer relations | Less relevance of credit in sales to individuals | Greater attractiveness for customers taking advantage of credits |
Strategic impacts for companies
The choice between pure and hybrid Simples Nacional affects more than the tax form. It affects how the company positions itself in the value chain.
B2B companies will need to show customers the tax impact of contracting. In many sectors, the negotiation will no longer revolve solely around the gross price, but will take into account credit, financial flow and net cost.
In pricing, margins, markups and contracts will have to be reviewed. A company that ignores the reform can sell with a positive apparent margin, but lose competitiveness by not generating adequate credits for the buyer.
In the relationship with suppliers, the logic also changes. Companies that buy inputs from suppliers capable of generating credits can reduce effective costs and improve operating margins. The entire chain is analyzed more rigorously.
Tax reform deadlines and transition
The tax reform transition begins in 2026, with an initial testing and adaptation phase. Coexistence between the current system and the new model will occur gradually until 2033, when the new system will be fully implemented.
During this period, companies will have to deal with old and new rules simultaneously. This includes current taxes, new fields in tax documents, system adjustments, new obligations and changes in pricing.
Between 2026 e 2032, The trend is for temporary complexity to increase. Entrepreneurs should avoid waiting until 2033 to take action. Preparation needs to start earlier, with a tax diagnosis, simulations and a review of processes.
Tax Reform Calendar
| Period | What changes | Practical impact |
|---|---|---|
| 2026 | CBS and IBS test year (CBS 0.9% and IBS 0.1%) | Adjusting tax systems, ERPs and issuing invoices |
| July 2026 | CNPJ requirement for individual taxpayers | Register regularization for correct calculation |
| 2027 | Entry of CBS, start of Selective Tax and IPI reduction | Changing the tax burden |
| 2029 a 2032 | Transition from ICMS and ISS to IBS | Coexistence of two systems and revision of contracts |
| 2033 | New complete system with CBS and IBS | End of ICMS and ISS and consolidation of the model |
Risks and challenges
The first risk is operational. Calculating IBS and CBS externally requires more detailed controls, and companies without a tax structure can make mistakes in documents, credits and payments.
The second risk is financial. The change can affect cash flow, especially in businesses with a high volume of purchases, installment payments or low margins.
There is also a commercial risk. Companies selling to regular regime clients could lose competitiveness if they don't evaluate credit generation. On the other hand, B2C companies can take on unnecessary bureaucracy by choosing the hybrid without any real gain.
Finally, tax technology will be decisive. Issuing systems, ERP, Accounting integration and tax reconciliation will need to be prepared for the new structure.
Compatibility
Complete integration.
How to choose between pure or hybrid
The decision should be based on simulation, not generic preference. The first criterion is the type of customer. If the company sells mostly to end consumers, the pure Simples Nacional tends to be more suitable. If it sells to companies that take advantage of credits, the hybrid deserves careful analysis.
The second criterion is margin. Businesses with high margins can better absorb the simplicity of pure Simples. Companies with tight margins, on the other hand, need to assess whether IBS and CBS credit can improve the net cost of the operation.
The third criterion is cost structure. Companies with many taxed inputs can benefit from non-cumulativeness. Companies with few creditable purchases may not have enough earnings to justify the hybrid.
The fourth criterion is the growth strategy. If the aim is to serve larger companies, participate in production chains or compete for relevant B2B contracts, generating tax credits can become a competitive advantage.
Trends and opportunities
O Hybrid Simples Nacional is gaining momentum among companies wishing to grow in the B2B market. For suppliers of industry, technology, logistics, maintenance, engineering, consultancy and recurring services, the ability to generate credit can become a commercial argument.
There will also be a change in market positioning. Companies that today only use Simples as a tax advantage will need to demonstrate tax efficiency within the chain. The professional buyer will look beyond price.
The reform also creates opportunities to review portfolios, segment clients and adapt commercial proposals. A company can, for example, maintain a B2C focus with pure Simples or structure a more robust operation to move into B2B with a hybrid model.
Conclusion
The choice between Pure National Simples e Hybrid Simples Nacional after tax reform should not be treated as an automatic decision. The best path depends on the customer profile, cost structure, margin, sector and growth strategy.
For B2C companies, the simplicity of pure Simples may continue to be the best alternative. For B2B companies, especially those in production chains, the hybrid can be decisive in preserving competitiveness and generating value for the customer.
Tax reform is not just an obligation to adapt. It can be an opportunity to review prices, improve processes, strengthen margins and reposition the company in the market.
A CLM Controller works with tax consultancy, tax planning, tax regime simulations and adaptation to tax reform. With technical analysis and a strategic vision, we help companies compare pure Simples Nacional, hybrid Simples Nacional, Lucro Presumido and Lucro Real to make safer, more competitive decisions in line with business growth.
