Tax Reform: 5 areas of your company that need to prepare for the changes

In addition to the tax team, other departments play an important role in adapting the company to the new tax model.

By Fabiana Soares

The Consumption Tax Reform presents significant challenges for companies, requiring not only technical adjustments but also a restructuring of processes in several areas. For this transition to be successful, it is essential that tax department does not operate in isolation, but seeks to integrate with different areas of the company. Cross-departmental collaboration is essential to ensure that the company adjusts appropriately to the new regulations and continues to operate efficiently and competitively.

Below are the areas that must work together for the project to adapt to the new tax model to be successful.

1. Technology

The Information Technology (IT) department is one of the most involved in this process. With the new taxation model, the assisted assessment to be presented by the tax authorities, and the new requirements for issuing tax documents, the company’s internal systems need to be adjusted.

IT will be responsible for adapting the software so that it is capable of calculating and performing the necessary validations on assessments and tax documents in accordance with the new standards required by the tax authorities, ensuring that all transactions are correctly recorded and comply with the law.

2. Purchasing

The Purchasing department also plays an essential role. To maximize tax credits, a careful and qualitative review of suppliers and the company’s expense structure is necessary.

The purchasing team must ensure that supplier contracts comply with the new tax regulations and that the company can efficiently take advantage of the credits, directly contributing to reducing the tax impact on operational costs.

3. Contracts

Additionally, the department responsible for contracts must be involved in the review and adjustment of clauses, ensuring transparency regarding taxes included in the total value of the transactions.

Adjustments to contractual documents are essential to avoid future disputes and to ensure that the parties involved clearly understand the applicable tax burden, reflecting the new scenarios imposed by the Reform.

4. Sales

The Sales area, in turn, needs to understand the Tax Reform impacts on the pricing of products and services. The new tax model may significantly alter prices, and the team must adjust its sales strategies to adapt to these changes, as well as clearly communicate to the customer any variation in the final value of products and services.

5. Finance

Finally, the Finance department must also be involved, especially regarding the company’s cash flow. The implementation of split payment and the new tax crediting dynamics may have a direct impact on the organization's finances.

Therefore, the sector needs to adjust to ensure adequate cash flow forecasting and optimization, in addition to monitoring new forms of tax payment, ensuring that the company remains financially healthy.

Adapting to the Tax Reform requires collaboration between various departments of the company, with each playing a key role in implementing the changes. By involving Technology, Purchasing, Contracts, Sales, and Finance, the Tax department ensures a more efficient transition and a successful adaptation to the new tax landscape.
For a well-guided transition and to ensure compliance at every stage, count on the support of DPC: dpc@dpc.com.br.