Reforma Tributária: Como a sua vida vai mudar em 2027? | Kafé com Kinea #57 com Bernard Appy

In this episode of Kafé com Kinea, Bernard Appy, former Extraordinary Secretary for Tax Reform and one of the main figures responsible for the approved proposal, explains why the current system, based on ICMS, IPI, PIS, Cofins, and ISS, has become one of the most complex and litigious in the world. He recounts how Brazil reached this point, with a fragmented tax base, taxes that accumulate along the production chain, and taxation concentrated at the origin that helps fuel the fiscal war between states. From there, Appy details the new value-added tax model, divided between the CBS, under federal jurisdiction, and the IBS, shared between states and municipalities, and shows how the design recovers full non-cumulativeness, expands the tax base, and begins to tax at the destination, with the return of credits within defined deadlines, cashback for low-income families, and a Management Committee responsible for IBS collection. He also explains Split Payment and collection by the acquirer, two mechanisms that have generated considerable confusion on social media, and argues why the fear of a brutal impact on companies' liquidity is unfounded, since the model will be optional and initially limited to business-to-business transactions. He also discusses fraudulent invoices, tax evasion, and why linking credit to prior tax collection tends to benefit those who pay on time. Finally, he points out the main risks of the transition: the regulation of the new taxes still under development, the adjustment of electronic tax document issuance systems, and the work that each company will need to do to understand how the reform changes its prices, its contracts with suppliers, and its own business model, in a process that begins in 2027 and is only completed in January 2033. By Ruy Alves, Partner and Investment Manager. 00:00 - Why is the current Brazilian tax system considered bad? 01:46 - Introduction to the episode and presentation of Bernard Appy. 03:21 - Why did Bernard Appy choose the banner of tax reform? 05:55 - Why have the conditions for reform become favorable now? 08:24 - Characteristics of a good VAT (Value Added Tax). 10:57 - Estimate of the new tax rate and comparison with the current burden. 12:24 - Details on the fragmentation and cumulativeness of the old system. 14:12 - Tax war and distortions in the organization of production. 17:52 - Complexity, tax litigation and the impact on potential GDP. 24:54 - The design of the reform: CBS, IBS and the Management Committee. 26:06 - Timeline for the tax transition for companies and society. 28:10 - How the Management Committee and centralized collection will work. 29:40 - Credit recovery and security for exporters. 31:41 - What changes in practice for entrepreneurs and consumers in 2027. 33:33 - Transparency: knowing exactly how much tax is paid. 34:21 - Reduction of bureaucracy and tax litigation. 39:46 - What is Cashback and Split Payment and how will it work? 45:02 - Clarifications on the impact of Split Payment on companies' liquidity. 49:19 - Advantages of the new model for good payers and combating tax evasion. 52:41 - Operational challenges, regulation and adaptation of business models. 57:17 - Final considerations on productivity and growth of the country. Join the Kinea community on WhatsApp and stay up-to-date: https://kinea.me/3KrOUkb Subscribe to receive information about upcoming episodes of Kafé com Kinea: https://www.kinea.com.br/lp-kafe-com-... Sign up for our newsletter and receive Kinea information firsthand: https://www.kinea.com.br/newsletter/ Access Kinea's social media and stay informed by clicking here: https://linktr.ee/kineainvestimentos More information about Kinea funds at: https://www.kinea.com.br/