Split payment is one of the main innovations of the Tax Reform and represents a profound change not only in the collection of taxes but also in the way companies receive proceeds from their sales and services. This is because, at the moment of payment, the amount is automatically split. The company receives only the net portion of the sale, while the tax portion is transferred directly to the Tax Authorities.
In the recent Senate vote on Supplementary Bill No. 108/2024, the topic was further developed, with new provisions on its application, including the mechanism for IBS and CBS, the liability of digital platforms that fail to properly relay information, and increased penalties for payment institutions, which may even lose their operating licenses. Although the adoption of split payment may reduce tax evasion and increase collection efficiency, it also brings relevant challenges for companies.
We highlight five points of attention:
1. Strained cash flow: Currently, companies remit taxes after the sale, which gives them some breathing room. Under the new model, this capital will no longer be available, especially impacting companies with thin margins;
2. Technological adaptation: Integration between accounting systems, ERPs, banks, and payment platforms will be required to ensure proper separation of values;
3. Operational complexity: Situations such as returns, chargebacks, discounts, and installment payments will require clear regulation to avoid litigation;
4. Legal certainty: The change requires detailed rules to prevent disputes between taxpayers and the Tax Authorities in cases of failures in the automatic separation;
5. Compliance costs: Banks and payment institutions will have additional charges to execute the split, and part of these costs may be passed on to companies.
The sectors most impacted will be retail, which handles a large volume of electronic transactions, digital services and marketplaces, which will have joint liability if they do not provide complete data, small and medium businesses, which will feel the cash loss more acutely, and low-margin segments such as supermarkets and gas stations, which will be hit particularly hard by the reduced available cash.
Split payment imposes new management challenges, especially regarding cash flow, technological adaptation, and increased compliance costs, in an environment already marked by tight margins and fierce competition. In this context, it becomes essential for organizations to begin their adaptation process as soon as possible: reviewing financial projections, improving management systems, and training their tax and accounting teams.
The effectiveness of the model will depend not only on regulatory and technological soundness but also on the capacity of companies to adapt to a more automated and tightly controlled tax environment.
