Brazil: Amendments to state-level sales tax (ICMS) (São Paulo)
Amendments to regulate reimbursement and complement of state-level sales tax
Amendments to regulate reimbursement and complement of state-level sales tax
The government of the state of São Paulo on 20 December 2022 published amendments to Ordinance CAT 42/2018 (including additional articles to the transitional provisions), which regulates the reimbursement and complement of the state-level sales tax (Imposto sobre Circulação de Mercadorias e Serviços—ICMS) and institutes the e-Ressarcimento system.
The amendments are effective beginning in 2023 and include:
- Change in the form of replacement of the previously received digital file
- Transfer of amount to be reimbursed to the establishment of a tax substitute, registered in the state for deposit, by the recipient, in the applicant's bank account
- Inclusion of the possibility of prohibiting the use of the reimbursement credit
- Inspection of amounts to be reimbursed
- Entry in the tax deed of the amounts to be reimbursed, including establishments that have closed their activities
- Requirements for completing the reimbursement invoice, in case of transfer of values
- Offering a guarantee for the use of credits, prior to inspection procedures
- Powers to assess the requests linked to the Ordinance
- Pre-drafting procedures for notice of infraction
KPMG observation
The amendments do not significantly change the calculation of tax or the layout for preparing the files.
Read a December 2022 report (Portuguese) prepared by the KPMG member firm in Brazil
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.