Entity Setup
Entity Setup & Simples Nacional under CBS/IBS: How Small Businesses Should Adapt in 2026
If you're a small enterprise in Brazil—or planning to become one—understanding how the Simples Nacional regime integrates CBS and IBS, plus your rights to opt-in or out, could save costs and streamline processes.
By NomadicTax Research Team • 5-8 min read • September 11, 2026
## What is Simples Nacional in the New CBS/IBS World?
Simples Nacional is Brazil's streamlined tax regime for micro and small enterprises. Recent resolutions — **CGSN nº 190/2026** & **191/2026** — have formally integrated CBS and IBS into Simples Nacional’s tax, fiscal, and administrative processes. It now expressly includes those new taxes in *arrecadação, fiscalização,* and *contencioso administrativo fiscal*. ([gov.br](https://www.gov.br/fazenda/pt-br/assuntos/noticias/2026/agosto/cgsn-atualiza-regras-do-simples-nacional-para-adequacao-a-reforma-tributaria-do-consumo?utm_source=openai))
## Key Changes & Choices for Entity Setup
- **Híbrido Simples**: Companies under Simples may now choose that while remaining in Simples Nacional, they collect CBS/IBS under its **regime regular** (i.e. outside standard DAS) for a period (first half of 2027). This gives flexibility. ([gov.br](https://www.gov.br/fazenda/pt-br/assuntos/noticias/2026/agosto/cgsn-atualiza-regras-do-simples-nacional-para-adequacao-a-reforma-tributaria-do-consumo?utm_source=openai))
- **Opt-in/Opt-out windows**: For Fiscal Year 2027, the window to opt into Simples is **1-30 September 2026**, and cancellation until **30 November**. The same dates apply for whether to keep CBS/IBS within Simples or under regime regular. ([gov.br](https://www.gov.br/fazenda/pt-br/assuntos/noticias/2026/agosto/cgsn-atualiza-regras-do-simples-nacional-para-adequacao-a-reforma-tributaria-do-consumo?utm_source=openai))
## Setting Up the Right Entity Structure
| Scenario | Entity Type | Advantages Under CBS/IBS | Trade-offs / Considerations |
|---|---|---|---|
| Very small local service provider | MEI or EPP under Simples | Simplified taxes, slower transition, smaller administrative burden | Limited turnover thresholds, may lose benefits if switching to regular regime |
| Medium-sized business with interstate service / goods | ME (Microempresa) under Simples with hybrid mode | Access to simplified regime but with CBS/IBS applied clearly and regular regime when beneficial | Need tracking of revenues by service type, multiple document types, system updates |
| Specialized professional or digital services | Consider Regular Regime outside Simples | May simplify tax calculation under CBS/IBS, clearer compliance when supplying out-of-scope Simples services | Higher tax burden / costs compared to Simples, more obligations, full accounting required |
## Practical Steps for 2026 & Early 2027
1. **Decide your path** during **September 2026**: whether to stay in Simples, choose hybrid mode, or exit Simples. 2. Update financial systems and fiscal document issuers to support CBS/IBS in the specified **leiautes** (layouts). Be ready for document types requiring CBS/IBS fields from **3-Aug-2026** onward, and full compliance for Simples optants by **1-Jan-2027**. ([cgibs.gov.br](https://cgibs.gov.br/prazo-para-adequacao-dos-sistemas-de-emissao-de-notas-fiscais-ao-regulamento-do-ibs-encerra-em?utm_source=openai))
3. Review accounting to separate revenue streams (goods vs. services; local vs intermunicipal). 4. Train accounting and sales teams to avoid rejecting fiscal documents for missing CBS/IBS details.
## Case Example: Local Café Owner
Imagine Alice runs a café in São Paulo under Simples Nacional. Her regular invoices (bens materiais + café serviços) require usage of NF-e or NFC-e with CBS/IBS breakdown by **3 August 2026**. But as a Simples optant, she can collapse CBS/IBS into her normal DAS until **1 January 2027**, if she doesn’t opt for the hybrid regime. If Alice fails to update her point-of-sale system by that date, her invoices may be rejected for missing CBS/IBS data. The cost of upgrade may be smaller than the penalties or lost business.
By choosing entity setup carefully and acting on the new opt-in periods, small businesses can stay compliant and competitive in Brazil’s transformed tax landscape.