Turning Tax Reform into Competitive Advantage with BTO

Brazil’s Tax Reform is reshaping the corporate landscape with promises of simplification, but also with uncertainties that require strategic attention. In this new context, companies that can anticipate changes and adapt intelligently will gain a clear competitive advantage. And that is precisely where the BTO (Business Transformation Outsourcing) model stands out as a differentiator.

The impacts of Tax Reform and the selective tax on the business environment

With the Tax Reform approved in December 2023, Brazil is beginning a profound change in its consumption tax system, replacing five taxes with two new ones: CBS, at the federal level, and IBS, at the state and municipal levels. The changes begin to be implemented in 2026 and follow a transition schedule through 2033. For companies, this means reviewing processes, adjusting systems, and adopting a new approach to tax planning, especially given the standard rate that may reach 26.5% for most goods and services.

The opportunities lie in identifying efficiencies, leveraging tax credits, and restructuring operations based on clearer data. But the risks are also significant: misinterpretation of legislation, lack of preparedness, and limited adaptability can result in substantial losses. Understanding these changes helps reduce interpretation risks and supports adaptation to the new rules.

What the BTO model is and why it is strategic in this scenario

In the context of Tax Reform, although there are higher unit costs and supply chain dependencies, this logic demands even more planning: companies must not only understand the new rules, but also anticipate scenarios, recalculate strategies, and act quickly. BTO makes this possible through specialized teams and technology that ensure predictability, efficiency, and compliance.

Partnerships with the leading ERP systems on the market

One of the pillars that strengthens performance in this scenario is our partnership with the leading enterprise management systems (ERPs). We work in an integrated manner with platforms such as SAP, Oracle, and Totvs—three of the most robust and well-established ERPs in the Brazilian market—with adaptations that also involve invoices and new routines linked to IBS and CBS. Each of these platforms has important particularities regarding tax adaptation, and our team has the expertise to configure, adapt, and maximize the value of these solutions in compliance with the new tax requirements, with a focus on security, control, infrastructure, and the reliable circulation of information.

In the Dual VAT model, Split Payment is a mechanism in which tax transfer occurs during financial settlement, aiming to combat tax evasion and ensure full non-cumulativity. In this model, the IBS or CBS tax credit is only released after confirmation of payment of the amounts highlighted in tax documents, with direct transfer to the IBS Managing Committee and the Federal Revenue Service. Testing begins in 2026, and implementation starts in 2027, initially in B2B operations, although this may create cash flow mismatches for companies.

This integration becomes even more strategic when we think about the future: the incorporation of Artificial Intelligence into ERPs is already a reality and strengthens companies’ ability to adapt in constantly changing regulatory environments. In addition, AI applied to analysis and automation within management systems expands operational efficiency and improves decision-making.

How BTO turns Tax Reform challenges into a competitive advantage for companies

Tax transformation requires analytical capability and continuous adaptation. With BTO, it is possible to:

• Automate and integrate data for more accurate IBS and CBS simulations, including tax burden impact analyses by operation category;
• Identify cost-saving opportunities based on updated tax scenarios, considering the single IBS rate, regional variation between states such as São Paulo, and the maximum standard rate of up to 26.5% for most goods and services;
• Reduce operational risks through a specialized structure aligned with regulations, knowing that further regulation and complementary laws will still define important aspects of the new taxation model;
• Optimize internal processes and redirect focus toward business strategy.

The calibration of the IBS reference rate considers the average collection of ICMS and ISS from 2024 to 2026.

At this point, it is worth highlighting that we are facing an economic revolution driven by Artificial Intelligence, which expands companies’ ability to process data, anticipate scenarios, and make more assertive decisions, while productivity and specialized support services will be decisive in adapting processes.

We use the BTO model to closely monitor the evolution of Tax Reform and ensure that our clients are always one step ahead.

With specialized teams, proprietary technology, and an integrated business vision, we support the reform through adaptation projects, qualified professional guidance, and care at every stage—transforming legal requirements into strategic decisions and helping our partners gain efficiency, predictability, and market advantage.

In addition, this support helps companies of different profiles, including those under the presumed profit regime, maintain compliance with legislation and avoid fines, especially as the new rules come into effect, when consulting a specialist makes a difference. We also monitor the impact of new technologies, such as the arrival of advanced Artificial Intelligence solutions, to improve decisions and operational practices. Keeping up with the changes approved by the National Congress requires continuous review.

Conclusion

Tax Reform does not have to be an obstacle. With the right approach, it can become a catalyst for growth. If your company is looking to turn complexity into opportunity, contact our specialists and find out how BTO can transform your operation.