Why will the CNPJ have letters in July? Understand new rules

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The National Register of Legal Entities (CNPJ) will include letters in addition to numbers in the identification of companies, organizations, rural producers, self-employed professionals and other types of legal entities from July this year.
The change aims to expand the system's capacity and ensure the continuity of the model, as the current format approaches its technical limit, according to the Federal Revenue Service.
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The new model will maintain the 14 characters of the traditional CNPJ, but will allow the use of letters from A to Z in specific positions in the structure, forming an alphanumeric CNPJ. The change represents a gigantic expansion in the possible combinations.
In Brazil, there are more than 24.9 million active CNPJs and around 29.2 million deactivated, according to data from Statistics Redesim (Federal Revenue).
In total, more than 63 million CNPJs have already been issued, a number that is close to the limit of the current model. This is because, like the CPF, each CNPJ number is unique and permanent and cannot be reused, even when the company is closed.
This change will be gradual and will only apply to new registrations. This includes newly created companies, new branches, independent professionals, condominiums and rural producers.
Those who already have a CNPJ will not need to change or update anything. The current numbers will continue to be valid and normally accepted by public and private systems.
Next, g1 clarifies the main doubts about 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
2. When does it start?
The issuance of CNPJs with letters will begin in July 2026, 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.
3. Who will receive CNPJ with letters?
Only new registrations from the start date, such as newly created companies, branches, rural producers, condominiums and self-employed professionals.
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.
4. 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 next year, all systems will be prepared and integrated into the National Network for the Simplification of Registration and Legalization of Companies and Businesses (REDESIM).
5. 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 Revenue informed that it will provide tools to facilitate this technical update.
6. 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.
7. 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 will be subtracted from it. 48.
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 Federal Revenue will make calculation routines available in popular programming languages to facilitate this technical adaptation.
8. 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 will 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.
9. 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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Editorial credit: SERGIO V S RANGEL / Shutterstock
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