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


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