Split payment will not be ready for January 2027
One of the most anticipated pieces of the Tax Reform will arrive later than expected. On August 12, 2026, after a meeting of the IBS Management Committee (CGIBS) in São Paulo, the Finance Secretary of Rio Grande do Sul and second vice-president of the committee, Pricilla Santana, confirmed that split payment, the automatic tax collection mechanism provided for in the Tax Reform, will not be available in January 2027, when effective collection of the Contribution on Goods and Services (CBS) and the Tax on Goods and Services (IBS) begins.
According to her, implementation requires more time and financial institutions themselves requested additional time to adapt. In her words, "split payment is one of the most complex tools to implement. [...] It will not start in January", adding that "our financial system, which has been an immeasurable partner in this challenge, also asked for more time".
What this means in practice for those already preparing
It's important to make clear: postponement is not cancellation. The postponement of split payment's entry into force does not mean, however, that the mechanism has been abandoned. It is expected that its use will occur later and, in an initial stage, on an optional basis and focused on transactions between companies. According to CGIBS, the timeline should consider a gradual rollout of the mechanism, without its absence in January preventing the start of the new taxation system.
Other sources in the sector already speak of a somewhat more defined window for this first phase: reports from financial market events indicate that split payment will have a phased adoption starting in March 2027, beginning with optional B2B transactions. It is worth following the upcoming joint acts from the Federal Revenue Service and CGIBS for official confirmation of this date.
RAD: the alternative taking center stage in 2027
With split payment out of the first day of effective CBS and IBS collection, Collection by the Purchaser (RAD) becomes the most concrete option already available in January 2027. Under this model, the buyer takes on collection of the tax related to the transaction, instead of payment being made directly by the supplier. As a result, the supplier, in turn, will receive the sale amount minus the portion allocated to tax payment, while with collection by the purchaser, the tax credit corresponding to the transaction can be enabled automatically according to the rules established for the new system.
Just as with split payment at its start, RAD will be optional, functioning as a complementary piece of the transition structure. For tax and finance teams, this means evaluating, transaction by transaction and supplier by supplier, whether it makes sense to opt for RAD as a way to reduce dependence on the tax behavior of third parties in the chain — especially in B2B relationships with risk of tax non-compliance by the supplier.
What is already in effect and does not change with the postponement
While the automatic collection mechanism matures, the obligation to correctly show IBS and CBS on electronic tax documents remains in full effect since August 3, 2026, with electronic tax documents required to contain the fields relating to both taxes, including the 1% test rate, being 0.1% IBS and 0.9% CBS. Even so, during 2026, this display is informational in nature and does not represent the actual collection of the new taxes, provided that the required ancillary obligations are met.
CGIBS also reinforced that the priority at this time of transition is to guide companies: CGIBS stated that it is monitoring taxpayers' adaptation to the new IBS and CBS fields and that, at this time, the priority is to provide guidance and allow for the correction of any inconsistencies, with the regulation approved by the Committee providing for the National Tax Compliance Program, with measures aimed at helping taxpayers adapt.
How to prepare your ERP and financial processes now
Even with split payment postponed, the message for tax, accounting, and IT teams is clear: this is not the time to let your guard down. The immediate areas of attention are:
Keep IBS/CBS parameterization in electronic tax documents (NF-e, NFC-e, CT-e, NFS-e) always up to date, since this obligation remains firmly in place regardless of the split payment timeline. Start mapping now which suppliers and customers could benefit from RAD as soon as the option becomes available, assessing risks of non-compliance in the chain. Follow upcoming joint acts from RFB/CGIBS, which should detail the exact start date of the first stage (optional, B2B) and the timeline for the second stage, which still has no published date. Review financial reconciliation and cash flow processes, since the coexistence of optional split payment and optional RAD in 2027 may create different scenarios depending on the business partner.
This content is for informational purposes only and does not replace guidance from your accounting team, which should assess the specific impact of these changes on your company's operations. If you want to understand how your company's ERP can prepare for split payment, RAD, and the other fronts of the Tax Reform, talk to Edoo.
Split payment excluded from January 2027: what changes in companies' tax and financial planning