Tax Reform

The implementation of the Tax Reform will take place gradually. Beginning in 2027, the transition phase will start with the introduction of the new taxes, CBS (Contribution on Goods and Services) and IBS (Tax on Goods and Services), which will temporarily coexist with part of the current tax system. Operational and system-related adjustments must be carried out in accordance with the legal timeline established by the competent authorities.

Contracts and processes will be adapted in accordance with the legal and regulatory requirements applicable at each stage of the transition. Additional guidance may be issued as regulations evolve and new procedures are defined.

Yes. The Simples Nacional program will remain in effect.

The deadline for suppliers enrolled in Simples Nacional to choose between the two tax regimes for the first half of 2027 is September 30, 2026, making it essential for AXIA to be informed of their choice.

No. The choice of tax regime is exclusively the supplier’s decision and should reflect each company’s operational, financial, and tax circumstances.

A supplier’s decision to remain under Simples Nacional does not prevent AXIA from purchasing goods or services from that supplier. However, it reduces the amount of IBS/CBS tax credits available to AXIA, limiting them to the amount of IBS/CBS effectively collected by the supplier.

The new tax model establishes a non-cumulative taxation system based on the appropriation of tax credits arising from taxable transactions. The ability to claim these credits will depend on the proper disclosure of tax information in the issued fiscal documents and compliance with all applicable legal requirements.

Tax considerations may form part of the economic evaluation of procurement and contracting processes, together with the other commercial, technical, and operational criteria adopted by the Company.

Yes. The implementation of the new tax model may have implications for existing contracts, which will be assessed in accordance with the terms and conditions set forth in each contractual instrument and the applicable legislation.

When required, contractual instruments may be updated to reflect changes resulting from the Tax Reform. 

Any related guidance will be communicated in due course.

Each situation will be evaluated based on the applicable contractual provisions, taking into account the relevant legal requirements and any impacts that can be effectively demonstrated.

The effects of the Tax Reform on the overall tax burden may vary depending on several factors, including the tax regime adopted, the industry sector, the company's cost structure, and its ability to claim tax credits. Therefore, the impacts should be assessed individually by each supplier, in consultation with their tax advisors, taking into account their specific operational and financial circumstances.

Suppliers should evaluate the effects of the new tax environment on their cost structure, tax credit utilization, cash flow, pricing strategy, and margin formation when preparing commercial proposals.

Split Payment is a mechanism introduced by the Tax Reform under which tax collection may occur simultaneously with the payment of the underlying transaction. However, its implementation and operational framework will still depend on final regulations and guidance to be issued by the competent authorities.

The potential effects of Split Payment on cash flow may vary depending on the operational model and the regulations applicable to each transaction, the details of which are still subject to further regulatory definition by the competent authorities.

Suppliers are encouraged to assess the potential implications for their tax and financial management processes in consultation with their tax and financial advisors.

Fiscal documents will include new fields and information related to CBS and IBS, in accordance with the layouts and rules established by the tax authorities.

Yes. Fiscal documents issued without the proper completion of IBS/CBS-related fields, including CST, cClassTrib, tax base, and tax rates, will be rejected.

The use of these documents will follow the applicable regulations and the operational procedures established for each type of transaction.

Yes. Companies will need to ensure that their systems are prepared to issue, receive, and process the new tax fields required under the Tax Reform.

If additional information is required to comply with the new tax requirements, suppliers will be notified and provided with the appropriate guidance in due course.

Fiscal documents must contain the codes and classifications required by applicable legislation, including NCM/NBS, CST, cClassTrib, and other information related to CBS and IBS, as applicable to each transaction. Suppliers are responsible for ensuring that this information is accurate and up to date, as any errors or inconsistencies may result in the rejection of the fiscal document.

The Company may publish communications, guidance materials, manuals, and other supporting content whenever necessary to facilitate the implementation of the changes introduced by the Tax Reform.

In addition, the Company remains available to provide further clarification whenever needed.

Suppliers should continue to use the standard communication channels made available by AXIA, as well as any specific channels that may be introduced and communicated in the future.