The National Council of fiscal Policy (CONFAZ) issued a new rule that should simplify the compensation of taxes for interstate sales and unburden the small companies.
A new CONFAZ rule (Agreement 92/2016) takes effect on September 28th and it changes the procedures for requesting the reimbursement of the ICMS-ST (State Value Added Tax – Tax Substitution) on operations between federative units.
The tax replacement is a tax scheme in which the payment of the ICMS is under the responsibility of a single company. This company is supposed to pay this tax on behalf of all others on the production chain. The company will compensate this expense by embedding the extra charge to the final price of the good, for example.
Before Agreement 93, when a company decided to request for the ICMS reimbursement of a sales made to another State, the original supplier of the goods – the company that paid the ICMS-ST on behalf of the whole production chain – had to be found to provide the documentation that proved the ICMS of the goods being sold.
This procedure has changed with Agreement 93. The documents that prove the collection of the ICMS will be provided by any of the members of the chain of production, including with the direct seller, being a retailer, a wholesaler or a manufacturer.