16 Apr Tax reform at JD Edwards: complete guide and requirements for the next phase

Tax reform ceased to be a future event in January 2026. The IBS and CBS came into force, invoices already require the new fields and the companies that got ahead of the curve are operating within the new model.

But the changes continue, in stages, with new requirements that organizations are obliged to implement in their systems.

This guide brings together full context of the tax change and, above all, what's next for JD Edwards to ensure compliance at each new stage.

What will the Tax Reform change for taxpayers?

Although it is a subject that has already been much debated, it is worth recapping the main points surrounding the Tax Reform, before understanding the changes caused to JD Edwards.

The new model replaces five fragmented taxes - ICMS, IPI, PIS, COFINS and ISS - with a dual VAT system consisting of the IBS (Goods and Services Tax), of state and municipal competence, and by CBS (Contribution on Goods and Services), This is a federal competence.

In addition to these IS (Selective Tax), This is the case of products considered harmful to health or the environment, such as cigarettes, alcoholic beverages and certain items with a high environmental impact.

The most significant change in terms of financial management is the full non-cumulativeness. In the previous model, the right to PIS and COFINS credits depended on the company's tax regime. With the change in the Reform, the entire consumption chain generates credit automatically and widely. This can represent a significant cash benefit, but it requires the ERP record and control these credits accurately from the first day they are in force.

Table 1 - Old tax model vs. new model

Reform timeline: where are we and what's next?

The period between 2026 and 2032 is mandatory coexistence between two simultaneous tax regimes. While ICMS and ISS are progressively reduced, IBS and CBS grow at the same rate.

For ERP, This interval is the most demanding, as the system will need to calculate, record and reconcile taxes from two different models on the same transactions, with no room for inconsistency.

Thus, the companies that started suitability process in 2025 had time to conduct a thorough diagnosis, test the configurations in a controlled environment and train the teams before the turnaround.

Companies that have waited until 2026 to act run the risk of entering the new regime with the outdated system, This means rejected invoices, lost credits and potential exposure to fines.

Figure 1 - Timeline of the Tax Reform and the milestones for JD Edwards

What has already been changed in Oracle JD Edwards?

The entry of IBS and CBS in January 2026 required structural changes at JD Edwards, In particular, the rules for calculating taxes, issuing invoices and accounting for taxes.

These three points were addressed both by the standard solution provided by Oracle and by the own solution developed by MPL for companies running earlier versions of the system.

For companies that have already adapted, the system processes IBS and CBS in purchase and sale transactions, highlights the amounts in electronic invoices and records credits and debits in the correct accounts in the chart of accounts. SPED has been updated to receive the new records.

That basis has been resolved. What changes now are the additional requirements that the government will now demand for the continuity of the implementation.

What will the Tax Reform change in JD Edwards soon?

The next stage of the Reform defines three new requirements that will become mandatory for companies: the issue of Credit Notes, Debit Notes and the registration of Tax Events under the new tax model.

Each of these documents has a specific function in the tax cycle and needs to be supported by JD Edwards with the same precision required of conventional invoices.

Table 2 - New applications

The point for managers is that these three requirements are neither optional nor gradual: from the moment the government requires them, the company that doesn't support them in the system will be out of compliance.

Credit and debit notes issued outside the standard of the new model will be rejected. Unregistered events generate inconsistencies in the tax history with the IBS Management Committee, with a direct impact on the use of credits.

How will JD Edwards be updated for the next phase of the Tax Reform?

Oracle has made the tax updates available for Brazil on JD Edwards version 9.2.

For the new requirements - Credit Notes, Debit Notes and Events - the update is expected to be available soon. in July 2026. After release, companies will need to configure and validate the solution before putting it into production.

Companies running versions prior to 9.2, or who for some technical reason cannot install the Oracle update, such as extensive customizations, modified object dependencies, environment restrictions, will need a solution developed specifically for your context. The absence of a native update is not a justification accepted by the tax authorities, since compliance is mandatory regardless of the system version.

How the MPL acts to support you during this phase?

For companies on version 9.2, as soon as Oracle releases the July update, the MPL offers a configuration and validation service, ensuring that the new requirements work correctly in the company's specific environment, without overwriting existing customizations.

To companies in previous versions or with a technical impediment to installing the Oracle solution, the MPL offers its own development and configuration, with the same coverage of Credit Notes, Debit Notes and Events.

More than 18 tax adjustment projects have been submitted and contact directly with the Oracle board to resolve cases that are not answered in the standard documentation.

Tax reform is progressing in stages and JD Edwards needs to keep up with each one

The initial phase of the Reform has been resolved. What the government is demanding now is the next step in a change that will last until 2032.

Companies that treat each new phase as an isolated event, outside of a continuous cycle of adaptation, tend to arrive at deadlines without enough time to test and validate the configurations.

The result is systems in production with compliance errors that result in fines or the loss of credits that will not be recovered.

MPL accumulated more than 18 tax compliance projects delivered at JD Edwards and maintains a direct relationship with the Oracle board to address unresolved cases in the standard documentation.

For the new 2026 requirements, the window between the release of the Oracle update and mandatory compliance is short and configuration and development projects need to be planned in advance.

Frequently asked questions about the JD Edwards Tax Reform

Our company has already implemented the initial phase. Do we need to do anything now?

Yes. The January 2026 implementation covered the calculation and highlighting of IBS and CBS in standard operations. The new requirements - Credit Notes, Debit Notes and Events - are an additional layer that is not yet covered in most environments. The Oracle update is scheduled for July; the configuration and testing process needs to begin before then.

How does the Reform affect the ancillary obligations generated by the JDE?

SPED has received new records for IBS and CBS in the initial phase. The new requirements - especially the Tax Events - should generate additional records in the ancillary obligations, whose layouts will still be detailed in the complementary regulations. The Brazil localization of the JDE will need to be updated to reflect these changes as they are published.