Meet requirements of tax reform in Brazil in 2027

Business value

Brazil’s tax reform is a multi‑year, multi‑phase regulatory change aimed at simplifying and unifying the country’s complex tax system, with the first phase effective January 1, 2026, and additional requirements introduced gradually over time. The new Dynamics 365 Finance functionality enables organizations operating in Brazil to stay compliant as the reform rolls out. By supporting evolving tax rules and reporting requirements natively on the platform, Dynamics 365 helps reduce compliance risk, lower operational overhead, and avoid manual workarounds. This allows finance and operations teams to adapt incrementally to regulatory change, maintain business continuity, and plan with confidence as future phases of the reform are introduced.

Feature details

Tax reform updates for 2027 bring additional capabilities required to stay compliant with the multi-year regulatory change. The following capabilities were made available from January 1, 2026: - Introduction of new parameters: CST and cClassTrib. - Support for new tax codes: CBS and IBS. - Creation of new tax determination rules. - Application of updated tax calculation and posting logic through the modern Tax Calculation engine. - Updates to CNPJ for enhanced compliance. - NF-e layout changes in accordance with 2026 tax changes. - National (Federal) NFS-e and São Paulo city NFS-e formats. - NF-e and NFS-e formats are generated using the Electronic reporting framework. To support the Tax reform requirements from January 1, 2027, the following capabilities are introduced: - Support of the new tax type - IS. - New functions for fiscal notes and events, covering additional scenarios. - Support for split payments. - Capability to define posting logic for reformed tax. - Further updates to CNPJ to enhance regulatory compliance. Moving forward, we will be adding more capabilities according to the phased rollout of the Tax reform in Brazil.