CNPJ with letters from July: who will be affected? What changes? See 10 questions and answers

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Brazil will start issuing CNPJs in a new format: in addition to numbers, company identification will also include letters. The change, announced by the Federal Revenue Service, is part of the process of modernizing the national tax system.
The intention is to expand the number of possible combinations, avoiding the exhaustion of the current format (exclusively numerical) which already identifies around 60 million establishments.
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The 14-character structure will be maintained, but will now allow the inclusion of letters between the digits.
The new model will begin to be adopted gradually from July, and will only be applied to new registrations. In other words, existing companies will maintain their current CNPJs, without the need for replacement.
Below, g1 clarifies the main doubts about this change.
What is the alphanumeric CNPJ?
Why is this being done?
When does it start?
Who will receive CNPJ with letters?
Will the CNPJ registration procedure change?
What do companies need to do?
Companies and professionals already registered need to do something?
What changes in the Check Digit calculation?
What is the connection with the tax reform?
Will there be any cost to companies with this change?
1. What is the alphanumeric CNPJ?
It is the new model for identifying legal entities in Brazil. Instead of using just numbers, the new CNPJ will combine letters (from A to Z) and numbers (from 0 to 9), maintaining a total of 14 characters.
The visual structure will be similar to the current one, but with the inclusion of alphanumeric characters. (check the example below)
Current system vs. new typology
Federal Revenue
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2. Why is this being done?
According to the IRS, the number of possible combinations in the current model is close to the limit.
With the increase in the number of companies and branches, the agency decided to expand the system to ensure its long-term viability.
The inclusion of letters significantly expands the number of possible combinations.
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3. When does it start?
The issuance of CNPJs with letters will begin in July this year, gradually.
According to the Revenue, a calendar will be drawn up to define which types of companies or economic activities will first adopt the new format. This calendar, however, has not yet been released by the Revenue.
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4. Who will receive the CNPJ with letters?
Only new registrations from the start date - such as newly created companies, branches, rural producers, condominiums and self-employed professionals - will receive the CNPJ with letters.
The current format, composed exclusively of numbers, will remain valid. No additional procedures will be required on the part of taxpayers with the Federal Revenue Service or state and municipal agencies.
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5. Will the CNPJ registration procedure change?
No. The process for opening a company and applying for a CNPJ will remain the same. The only difference is that the number generated may contain letters.
According to the Revenue, from July onwards all systems will be prepared and integrated into the National Network for the Simplification of Registration and Legalization of Companies and Businesses (REDESIM).
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6. What do companies need to do?
Companies and systems that deal with issuing invoices or tax control will need to adapt their software, databases and internal routines.
There may be failures in issuing tax documents, difficulties with suppliers or delays in fulfilling tax obligations. The recommendation is that companies prepare in advance.
The IRS reported that it provides tools to facilitate this technical update.
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7. Do companies and professionals already registered need to do anything?
No. No action will be required with federal, state or municipal agencies.
Public systems will be updated to accept both the current and new formats. The expectation, according to the Revenue, is that this adaptation will occur automatically and transparently for companies.
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8. What changes in the calculation of the Check Digit?
The Check Digit (DV), a number that appears at the end of the CNPJ and serves to validate its authenticity, will continue to be calculated using the Module 11 method - a type of mathematical verification -, now adapted to include letters in the calculation.
Each character will be converted into a numerical value based on the ASCII table, which assigns a specific number to each symbol, and the value 48 will be subtracted from it.
For example: the letter A corresponds to the number 65 in the ASCII table and, for the calculation, the value 17 will be used (which is the result of 65 minus 48).
The IRS will make calculation routines available in popular programming languages to facilitate this technical adaptation.
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9. What is the connection with the tax reform?
The new CNPJ is part of the process of modernizing the tax system.
The change paves the way for the implementation of two new taxes: the CBS (Contribution on Goods and Services) and the IBS (Tax on Goods and Services), which aim to unify and simplify several taxes currently in force.
To achieve this, it will be necessary to have more modern and integrated systems. The new alphanumeric CNPJ contributes to this process by expanding the system's capacity, facilitating the separation between personal and professional expenses and automating processes such as the recovery of tax credits.
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10. Will there be any cost to companies with this change?
Yes. Companies will need to update their systems to recognize the new CNPJ with letters and correctly calculate the Verification Digit.
These adaptations can generate technical costs, especially in software for issuing invoices and databases.
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