Starting in 2027, companies that purchase from farmers who are not taxpayers of the IBS and CBS will not be entitled to the tax credit corresponding to the transaction.
Under the tax reform, rural producers, whether individuals or legal entities, with annual revenue of less than R$ 3.6 million, as well as integrated rural producers, will not be considered taxpayers for the Tax on Goods and Services (IBS) and the Contribution on Goods and Services (CBS).
Under these circumstances, their sales will not entitle the buyer to the ordinary credit, but only to the presumed credit, pursuant to Articles 164 and 168 of Complementary Law n.º 214/2025.
A non-taxpaying producer may, at any time, opt for the regular regime and begin paying the IBS and CBS. This option will take effect on the first day of the month following the request. Until such time as the producer makes this choice, they will remain under the differentiated regime, and the buyer will be limited to the presumed credit.
Given this scenario, we highlight two points to note:
1. How the presumed credit will be calculated: Consolidated Law nº 214/2025, Article 168, paragraph 3, provides that the presumed credit will correspond to the application of a percentage to the net amount for tax purposes of the transaction, as defined in paragraph 1, subparagraph III, of the same article. This percentage will be set annually, by September, by a joint act of the Minister of Finance and the IBS Management Committee (Article 168, paragraph 4, of Law nº. 214/2025). It will be based on the historical ratio between the IBS and CBS actually collected in the supply chain and the total value of purchases from non-taxpaying producers in the previous five calendar years (Art. 168, § 5, III). The credit will not correspond to the tax actually levied on that specific purchase, but rather to a percentage determined based on historical data from the supply chain. For this reason, the presumed credit may be less than the ordinary credit, which is calculated based on the full amount of tax shown on the tax document.
2. The Choice of Tax Regime and Its Impact on Commercial Relations: The decision to opt for the regular regime is the sole prerogative of the agricultural producer (Art. 165 of Constitutional Law n.º 214/2025). The purchasing company has no formal say in this choice. In practice, the difference between the presumed credit and the ordinary credit may directly influence commercial negotiations. Given this difference, it is natural for large agribusiness companies to begin encouraging or even making it a condition in commercial negotiations that the continuation of the purchasing relationship be contingent on their suppliers’ choice of the regular tax regime. This dynamic does not eliminate the tax cost, but it can shift it along the supply chain. If the supplier does not switch, the company will remain limited to the presumed credit, which is potentially lower than the ordinary credit. If the supplier opts for the regular regime as a result of the negotiation, it will become subject to the IBS and CBS and may seek to pass on this new cost to the selling price to preserve its margin.
For agribusiness companies, the key focus is on anticipating how the tax reform will affect each purchasing relationship. Mapping the supplier portfolio will make it possible to identify where the difference between presumed and ordinary tax credits could put pressure on margins and to assess, in advance, the effects of this change on each transaction.
