Brazil: Split Payment 2026: Como Funciona a Separação Automática de Tributos na Reforma

The Split Payment is one of the most innovative mechanisms of the Brazilian Tax Reform. Starting in 2026, the system will automatically separate the amounts of CBS and IBS at the time of the transaction, transferring them directly to the collecting entities.

What is Split Payment?

Split Payment is a mechanism that automatically separates the tax amount at the time of payment in a commercial transaction.

How it works:

• Customer pays R$ 1,000 for a product
• System automatically separates: R$ 725 for supplier + R$ 275 for taxes (CBS + IBS)
• Taxes go directly to the Brazilian Federal Revenue Service (CBS) and the IBS Management Committee
• Supplier receives only the net amount

Implementation Schedule

Source: Representatives of the Brazilian Federal Revenue Service at a Casa JOTA event

How It Works in Practice

Example: Sale of R$ 10,000

Without Split Payment (Current Model):

1. Customer pays R$ 10,000 to the supplier
2. Supplier receives R$ 10,000
3. Supplier calculates and pays taxes later
4. Risk: tax delinquency

With Split Payment (New Model):

1. Customer pays R$ 10,000
2. System automatically separates:
   – R$ 7,250 → Supplier
   – R$ 1,200 → CBS (Brazilian Federal Revenue Service)
   – R$ 1,550 → IBS (Management Committee)
3. Taxes are automatically collected
4. Zero risk of delinquency

Advantages of Split Payment

For the Government

• ✅ Immediate and automatic collection
• ✅ Reduction in tax evasion
• ✅ Lower tax delinquency
• ✅ Real-time control

For Compliant Companies

• ✅ Simplification of the process
• ✅ Reduction of bureaucracy
• ✅ Less risk of errors
• ✅ Faster tax credit

Challenges and Impacts

Cash Flow

Critical impact: Companies will receive only the net amount (excluding taxes)

Example:

Technological Adaptation

Companies will need to:

• Update ERP systems
• Integrate with payment methods
• Train teams
• Review financial processes

Legal Issues

Possible disputes over:

• Improperly withheld amounts
• Discrepancies in the application of rates
• Mechanisms for contestation and reimbursement
• Legal security during the transition

Role of the Financial Sector

Banks and fintechs will be essential to enable split payment:

• Develop technological infrastructure
• Ensure compatibility with Pix, cards, invoices
• Process automatic separation in real-time
• Provide reports and receipts

How Your Company Should Prepare

Checklist 2025-2026

• ☐ Map impact on cash flow
• ☐ Review necessary working capital
• ☐ Update ERP system
• ☐ Train financial team
• ☐ Test split payment in 2026 (optional)
• ☐ Review contracts with suppliers
• ☐ Hire specialized consultancy
• ☐ Monitor complementary regulation

Strategic Actions

1. 2025: Planning and technological adaptation
2. 2026: Voluntary tests (B2B)
3. 2027-2028: Gradual implementation
4. 2029+: Full operation

Frequently Asked Questions

1. Is split payment mandatory in 2026?

No. In 2026 it will be optional and restricted to B2B operations (between companies).

2. Does it affect the final consumer?

Not directly. The consumer pays the same amount. The difference is that the tax is automatically separated.

3. What about tax credit?

According to LC 214/2025, credits can only be appropriated after the debt is extinguished, which changes the current model.

4. Does it work with Pix?

Yes. The system must be compatible with all payment methods (Pix, cards, invoices).

5. What if there is an error in withholding?

There should be mechanisms for contestation and reimbursement, yet to be regulated.

Also read: Tax Reform 2025: Complete Guide CBS and IBS – Timeline and Impacts

Also read: Tax Cashback: How Tax Refunds Work for Low Income

Related Articles

See also: Tax Reform 2025 | Simplified Tax Regime 2026

Official Sources

• Complementary Law 214/2025
• Fenacon – Split Payment Analysis
• Migalhas – Fiscal Impacts

Last update: October 22, 2025 | Information based on LC 214/2025 and specialized analyses

Does your company need to prepare for split payment? Consult our team for strategic planning and technological adaptation.

Technology Behind Split Payment

How It Works Technically

1. Company issues an electronic invoice
2. System identifies due taxes
3. Payment is automatically divided:
   • Part to the supplier
   • Part to the government’s account
4. Taxes are collected in real-time

Necessary Infrastructure

• Bank integration
• Updated NFe system
• API communication with the Revenue Service
• Segregated account for taxes

Impact on Companies

Advantages

• ✅ End of manual DARF
• ✅ Reduction of errors
• ✅ Less bureaucracy
• ✅ Automatic compliance

Challenges

• ❌ Need for greater working capital
• ❌ System adaptation
• ❌ Team training
• ❌ Implementation cost

International Comparison

Implementation Schedule

Phase 1 (2026):

• Pilot project with large companies
• Infrastructure tests

Phase 2 (2027):

• Expansion to medium-sized companies
• System adjustments

Phase 3 (2028+):

• Mandatory for all companies
• System in full operation

How to Prepare

Checklist for Companies

• ☐ Evaluate current ERP system
• ☐ Check need for updates
• ☐ Train financial team
• ☐ Review cash flow
• ☐ Plan additional working capital
• ☐ Monitor regulation