MEI and Simples Nacional: Obligations and Risks in 2026

This page is a translation of the original Portuguese text, provided for convenience. It deals with Brazilian law. If there is any discrepancy, the Portuguese version prevails. Read the original in Portuguese

Individual microentrepreneurs and companies that have opted into the Simples Nacional (Brazil’s simplified tax regime for small businesses) have tax obligations that, if not met, can lead to fines, exclusion from the regime, and personal liability for the business owner.

What the MEI and the Simples Nacional Are

The Individual Microentrepreneur (MEI) is a business category created to bring small entrepreneurs into the formal economy. It is available to those with annual gross revenue of up to R$ 81.000,00. This category offers benefits such as simplified taxation, social security coverage, and the ability to issue invoices. The regime was established by Complementary Law No. 128/2008, which amended Complementary Law No. 123/2006 (the General Law of Micro and Small Businesses).

The Simples Nacional, in turn, is a special tax regime that combines federal, state, and municipal taxes into a single payment slip (the DAS, or Simples Nacional Collection Document). Microenterprises (ME) with annual gross revenue of up to R$ 360.000,00 and small businesses (EPP) with revenue of up to R$ 4.800.000,00 may opt into it. Both regimes require compliance with specific ancillary obligations, on pain of administrative and tax penalties.

Main Obligations of the MEI

The MEI must pay the monthly Simples Nacional Collection Document for the MEI (DAS-MEI), which includes the social security contribution, plus ICMS (the state value-added tax) and ISS (the municipal services tax), depending on the activity carried out. The amount is fixed and updated every year based on the current minimum wage. Paying late results in a fine and interest, and it can also jeopardize your status as an insured person with the INSS (Brazil’s National Social Security Institute).

In addition to the monthly DAS, the MEI must file the Annual Simples Nacional Declaration (DASN-SIMEI) by May 31 each year. In this declaration, the entrepreneur reports the previous year’s gross revenue and whether an employee was hired. Failing to file it can result in a minimum fine of R$ 50,00 and can block the issuance of DAS payment slips.

The microentrepreneur must also keep a monthly record of revenue through the monthly gross revenue report, as required by law. Anyone engaged in commerce or manufacturing must issue an invoice for sales to legal entities. The team at Cassius Marques ADVOCACIA can advise you on the correct classification of your activities.

Failing to meet the MEI’s tax obligations can lead to exclusion from the Simples Nacional and the loss of the social security benefits tied to the regime.

Obligations of Simples Nacional Companies

Microenterprises and small businesses that have opted into the Simples Nacional have more complex obligations than the MEI. The monthly DAS payment is calculated based on revenue for the previous twelve months, using progressive rates according to the schedule (anexo) that corresponds to the company’s activity. The calculation requires care to avoid underpayment, which is a tax violation.

Accounting and tax bookkeeping are mandatory for Simples Nacional companies and must be performed by a qualified accounting professional. The Socioeconomic and Tax Information Declaration (DEFIS) must be filed every year by March 31. The company is also subject to labor-related obligations (GFIP, RAIS, CAGED) if it has registered employees.

Another relevant point is the state sublimit. In states with a smaller share of national GDP, the sublimit for paying ICMS and ISS within the Simples Nacional may be lower than the national ceiling. A company that exceeds the state sublimit must calculate and pay these taxes separately, which makes tax management more complex.

Risks of Failing to Meet Your Obligations

The main risk for an MEI that fails to meet its obligations is exclusion from the simplified regime. The MEI’s CNPJ (national business taxpayer registry number) can be canceled after more than twelve consecutive months of default. In that case, the tax debts are entered on the Union’s registry of delinquent tax debt (dívida ativa da União) and can be collected through the courts, including by seizing the owner’s personal assets.

For Simples Nacional companies, noncompliance can lead to exclusion on the authorities’ own initiative by the Federal Revenue Service, the states, or the municipalities. The most common situations that lead to exclusion are exceeding the revenue limit without reporting it, unresolved tax debts, and carrying out activities the regime does not allow. The exclusion takes effect retroactively to the start of the calendar year in which the irregularity occurred.

Personal liability of the partners is also a real risk. Under current law, in cases of irregular dissolution of the company or commingling of assets, the partners may be held liable with their personal assets for the company’s debts. This piercing of the corporate veil has been applied in tax matters as well as in labor and consumer law.

How to Regularize Your Tax Situation

An MEI in default can regularize its situation by paying the debts in installments directly through the Simples Nacional Portal. The system allows up to 60 installments, with a minimum installment of R$ 50,00. Regularizing is essential to preserve your social security rights and to avoid having the debt entered in the registry of delinquent tax debt.

Simples Nacional companies can request an ordinary installment plan, also up to 60 installments, or join special regularization programs when the Federal Revenue Service makes them available. It is essential to calculate the full amount of the debts before starting the installment plan, to avoid having installments rejected because of inconsistencies in the declared amounts.

Specialized legal advice is recommended especially when there is a risk of exclusion from the regime or when the company has already received a notice from the Federal Revenue Service. A technical analysis can identify the best regularization strategy and, where appropriate, challenge improper assessments through an administrative defense.

Frequently Asked Questions

What are the consequences of not paying the DAS-MEI on time?

Paying the DAS-MEI late results in a fine of 0.33% per day (capped at 20%) and interest based on the Selic rate (Brazil’s benchmark interest rate). Beyond the financial cost, prolonged default can lead to cancellation of the MEI’s CNPJ and loss of your status as an INSS insured person, which affects access to benefits such as retirement and the incapacity benefit.

How can I tell whether my company has been excluded from the Simples Nacional?

Exclusion from the Simples Nacional is communicated through a Notice of Exclusion, available in the Simples Nacional Electronic Tax Domicile (DTE-SN). Taxpayers should check the portal regularly for notifications. After you are notified of the notice, you have 30 days to file a challenge or to pay off the debts that led to the exclusion.

Can a company return to the Simples Nacional after being excluded?

Yes. An excluded company can apply to opt back into the Simples Nacional in January of each year, as long as it has resolved all the issues that led to the exclusion. The request is made through the Simples Nacional Portal and is subject to verification by the Federal Revenue Service, the states, and the municipalities. If there are outstanding debts, the request will be automatically denied.

As informações deste artigo são de caráter informativo e não substituem consulta jurídica individualizada. Cada caso possui particularidades que exigem análise específica.