Is Split Payment already in effect in 2026?

Not in the sense of actual tax collection. According to the Brazilian Tax Reform timeline, 2026 is a testing and adaptation year, with assisted apportionment of IBS and CBS and informational test rates. Effective Split Payment collection is scheduled to begin from 2027, initially for B2B transactions on a voluntary basis, according to acts from the Federal Revenue Service and the IBS Management Committee.

Does Split Payment create a new tax?

No. Split Payment does not create a new tax: it changes how IBS and CBS are collected. Instead of the current declaratory model, the tax amount is automatically separated at the moment of financial settlement of the sale and directed to the tax authority, and the supplier receives only the net amount.

What is the biggest impact of Split Payment on the company's cash flow?

The end of the so-called tax float. Today, the tax amount stays in the company's account for some time before remittance. With Split Payment, that amount is withheld at settlement and never enters the company's bank account, requiring a revision of cash flow projections, payment terms, and reconciliation inside Protheus ERP.

Where should we start to prepare Protheus for Split Payment?

Start with an environment assessment: Protheus version, status of the TES-to-Tax Configurator migration, master data quality, and maturity of financial reconciliation. From there, define a parameterization plan, scenario simulation, and fiscal homologation before the 2027 rollout.

Split Payment in Protheus: What Changes

Q: Which Protheus version is needed to support the Tax Reform and Split Payment?

The recommendation is to keep Protheus on release 12.1.2410 or higher and migrate tax calculation from the TES model to the Tax Configurator (routine FISA170), which centralizes the fiscal and financial logic required by the new regime. Vanquish Code verifies your environment compatibility at no cost.

Split Payment is the quietest — and deepest — change Brazil's Tax Reform brings to your cash flow, and Protheus ERP must be ready for it. Instead of the company receiving the full sale amount and remitting taxes later, IBS and CBS will be automatically separated at the moment of financial settlement and sent directly to the tax authority. The supplier receives only the net amount. It sounds like a technical detail, but it has a direct impact on working capital, reconciliation, and fiscal closing.

In this guide you will understand what split payment is, the realistic timeline between 2026 and 2027, the cash flow effect — and most importantly for TOTVS users — what needs to be adjusted in Protheus to navigate this transition without surprises.

What Is Split Payment in Brazil's Tax Reform?

Split Payment (or segregated payment) is a new collection method for IBS and CBS. In practice, when a sale is paid, the payment system separates the tax portion and sends it directly to the tax authority, passing only the net value to the seller.

The key point many managers have not yet internalized: Split Payment does not create a new tax. It changes how taxes are collected — moving from the declaratory model (calculate and pay later) to collection at financial settlement itself. The legal basis is Constitutional Amendment 132/2023 and Complementary Law 214/2025, with detailed regulation throughout 2026.

In short: the tax no longer "passes through" the company's account. It is separated before the money reaches the cash register — which completely changes the financial forecasting logic in the ERP.

Different modalities are under discussion, from the traditional Split Payment (simple segregation at settlement) to the intelligent Split Payment, able to account for accumulated credit offsets and collect only the net balance due. The link happens between the NF-e (electronic invoice) and the payment transaction, with separation handled by the payment arrangement (Pix, bank slip, card).

Timeline: 2026 Is a Dry Run, 2027 Is When It Counts

It is important to separate noise from fact. According to the Tax Reform schedule, 2026 is a testing and adaptation year: fiscal documents already highlight IBS and CBS figures, there is assisted apportionment and informational test rates, but no actual financial withholding via Split Payment.

2026 — testing phase: controlled environment, system calibration, and validation between businesses, banks, and the tax authority
2027 — voluntary start: Split Payment begins operating initially for B2B transactions on a voluntary basis, prioritizing Pix and bank slips
Transition through 2033: progressive mandatory rollout and expansion of modalities, per acts from the Federal Revenue Service and the IBS Management Committee

The warning stands: even in 2026 there are already ancillary obligation deadlines related to IBS and CBS. Waiting until 2027 to start acting is too late — preparation must happen now.

The Real Impact: The End of the Tax "Float"

The biggest practical effect of Split Payment is not tax calculation — it is cash flow. Today, the tax amount typically stays in the company's account for some period before remittance — the so-called tax float, which many operations use, even without realizing it, as working capital.

Illustrative example: a sale of R$ 100,000 (roughly USD 20,000) with a combined IBS + CBS rate of 25% would result in approximately R$ 25,000 automatically withheld at settlement. This amount, which previously could remain in the account for days, simply never enters the company's bank account.

For thin-margin businesses, this requires a revision of payment terms, contract renegotiation, and above all, an ERP capable of forecasting and reconciling this new flow precisely. This is where Protheus preparation moves from an IT agenda item to a CFO-level discussion.

What Protheus Needs to Support Split Payment

In the TOTVS ecosystem, the foundation is migrating tax calculation from the legacy TES model (Entry and Exit Types) to the Tax Configurator — routine FISA170, which centralizes the fiscal and financial logic of the new regime.

Tax Configurator (FISA170): the engine of compliance

Rule centralization: the Configurator takes over IBS and CBS calculation, integrating sales, billing, purchasing, and finance consistently
Financial rules: calculation composition, bases, rates, invoice due dates, and withholdings — all essential for non-cumulative credit treatment and Split Payment handling
Minimum recommended version: keep Protheus on release 12.1.2410 or higher for Reform-related features and fixes

Finance and reconciliation: where Split Payment "appears"

Split Payment directly impacts reconciliation, finance, and fiscal closing. Since the received amount is now net, the ERP must record the withheld portion, reconcile what actually came in, and reflect this in cash flow projections — without spreadsheet workarounds. Misaligned master data is the primary source of errors at this stage.

The Tax Configurator only delivers predictability when master data is coherent with the operation. Bad data produces wrong taxes — and with Split Payment, that error becomes a real-time cash problem.

Want to understand the step before this journey? See how to migrate from TES to the Tax Configurator without errors.

How to Prepare Protheus Now — Practical Checklist

Version diagnosis: confirm the environment is on 12.1.2410+ with Reform packages applied
TES → Configurator migration status: map what has already been migrated and what still calculates via TES
Master data health: products, customers, suppliers, and fiscal rules aligned per branch
Scenario simulation: project IBS/CBS load and cash flow impact with Split Payment active
Financial reconciliation: adjust routines to recognize net received amounts and withheld portions
Fiscal homologation: test with real scenarios before the 2027 cutover

How Vanquish Code Helps with Split Payment Compliance

Vanquish Code is a full-service IT firm with deep technical expertise in Protheus ERP, specialized DBA services, and Agentic AI solutions. Our Tax Reform compliance approach combines fiscal expertise with business strategy:

Free Protheus environment diagnosis: version, TES-to-Configurator migration status, and master data quality
Tax Configurator parameterization (FISA170): fiscal and financial rules aligned to IBS, CBS, and Split Payment
Finance and reconciliation adjustments: so that cash flow reflects net receipts without rework
Simulation, homologation, and training: real scenarios and a team prepared before 2027

Conclusion: Companies That Prepare Protheus Now Will Lead

Split Payment changes less about how much your company pays in taxes and much more about when and how that money leaves your cash flow. The difference between companies that will navigate 2027 with confidence and those that will struggle with working capital shortfalls lies in ERP preparation quality — a parameterized Tax Configurator, healthy master data, and reconciled financials.

Vanquish Code is ready to lead this process, from the free diagnosis to fiscal homologation, with real depth in both Protheus and Brazil's Tax Reform.

Split Payment in Protheus: What Brazil's Tax Reform Changes