The approval of tax reform in Brazil marks the beginning of a new era for the country's tax structure. The unification of federal, state, and municipal taxes into a dual VAT, in addition to changes in special regimes, promises to simplify the system, but will also bring significant challenges for companies that need to adjust processes, systems, and ensure compliance in a transitioning regulatory environment.
Some sectors, due to the nature of their operations and tax complexity, are likely to feel the impact even more intensely. We will explore the main segments and show how a robust ERP system, such as Oracle NetSuite, can be a strategic ally in facing this new scenario.
Retail: fine-tuning tax rate calculations and credit management.
Brazilian retailers already deal daily with a tangle of tax rules, electronic invoices, tax substitution, and regional benefits. The reform should reorganize all of this, altering calculation bases and requiring reconfiguration of systems that automatically calculate taxes at the point of sale or in the back office.
Example: Large online retailers and marketplaces need to quickly review their tax flows to avoid compromising operations and the correct transfer of taxes.
An ERP system like NetSuite offers critical advantages in this scenario:
- Flexible parameterization of tax rules to handle differentiated tax rates by product, region, or channel.
- Automated management of VAT credits and debits, preventing unwanted accumulation and improving cash flow.
- Native integration with NF-e issuers, maintaining compliance without headaches.
Industries: impacts on the production chain and input control.
The industry will be directly impacted by changes in taxes on goods, services, and supply chains. Adjustments to accumulated credits, a new VAT calculation system, and the need to track inputs and finished products under the new rules will require reliable technology.
Example: Technology companies with local hardware or equipment production will need to adapt their supply chain to the new tax logic.
With NetSuite, it is possible to:
- Controlling production costs while considering the new tax model, integrating purchases, inventory, and sales into a continuous flow.
- Automating SPED (Brazilian Public Digital Bookkeeping System) and future government-required reports reduces the risk of inconsistencies and fines.
- To have complete visibility of the operation, with centralized data for quick decision-making.
Services: reclassification and tax incidence under new parameters
The service sector may experience one of the biggest proportional changes. The tax burden, historically different from that of products, is likely to be recalculated, affecting everyone from small consultancies to large companies in technology, healthcare, and education.
Examples: IT and cybersecurity consultancies, digital marketing agencies, car rental companies, ticketing platforms, and fintechs need to assess how the new taxation affects their business models and margins.
Here, ERP helps to:
- Correctly reclassify services, adjusting the chart of accounts and tax rules for each type of activity.
- Simulate scenarios and project the impact of the new taxation, anticipating adjustments in pricing and margins.
- To ensure that invoices and withholdings are issued according to updated parameters, without exposing the company to tax risks.
Why prepare your business now?
The transition to the new system should take place over the next few years, but companies that start reviewing their processes now will have much more security.
A modern ERP system, such as Oracle NetSuite implemented by Active, is designed to adapt to tax changes, with advanced parameter settings and customizable reports.
Therefore, regardless of the sector, your company benefits from:
- Automation to handle the new rules without overburdening the finance team.
- Compliance guaranteed, with agile updates to tax layouts and ancillary obligations.
- Flexibility to expand or change operations as the market and legislation evolve.
How can Active help?
At Active, we specialize in implementing and configuring NetSuite for different sectors of the Brazilian economy. Our team understands the country's tax nuances and customizes the ERP for your business, preparing your company for tax reform and far beyond.
Speak with our consultants and discover how to get ahead, with processes ready for the future of taxation in Brazil.
