{"id":5043,"date":"2022-03-04T16:32:31","date_gmt":"2022-03-04T16:32:31","guid":{"rendered":"https:\/\/lataxnet.net\/es\/?p=5043"},"modified":"2022-03-04T16:33:22","modified_gmt":"2022-03-04T16:33:22","slug":"brazil-new-regulation-for-icms-tax-on-interstate-transactions-in-brazil","status":"publish","type":"post","link":"https:\/\/lataxnet.net\/es\/brazil-new-regulation-for-icms-tax-on-interstate-transactions-in-brazil\/","title":{"rendered":"Brazil: New Regulation for ICMS Tax on Interstate Transactions in Brazil"},"content":{"rendered":"<p><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#e2e2e2;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><style type=\"text\/css\"><\/style><div class=\"fusion-title title fusion-title-1 fusion-sep-none fusion-title-text fusion-title-size-three\" style=\"margin-top:10px;margin-bottom:15px;\"><h3 class=\"title-heading-left\" style=\"margin:0;\">Brazil: New Regulation for ICMS Tax on Interstate Transactions in Brazil<\/h3><\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-2 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#e2e2e2;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-1 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><style type=\"text\/css\"><\/style><div class=\"fusion-title title fusion-title-2 fusion-sep-none fusion-title-text fusion-title-size-five\" style=\"margin-top:10px;margin-bottom:15px;\"><h5 class=\"title-heading-left\" style=\"margin:0;\">Following a recent law regulating Brazil\u2019s State VAT on interstate transactions, new controversies remain on the horizon.<\/h5><\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><style type=\"text\/css\">.fusion-fullwidth.fusion-builder-row-2 { overflow:visible; }<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-3 nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#e2e2e2;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-2 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-1\"><p>On 5 January 2022, Supplementary Law 190\/2022 was published to regulate the allocation of Brazil\u2019s State VAT (ICMS) revenue on interstate transactions to end consumers (DIFAL), but it has ended up creating new controversies over the start of the new rules\u2019 effects.<\/p>\n<h2>ICMS revenue split rules<\/h2>\n<p>Following the Brazilian Federal Constitution\u2019s requirements on interstate transactions to end consumers, the ICMS should be split between the state of origin and state of destination as follows: (a) to the state of origin, the ICMS is calculated with the interstate rate (4%, 7% or 12%); and (b) to the state of destination, the ICMS is calculated based on the difference between the interstate rates used in the transaction and the rate applicable to internal transactions in the state of destination (usually from 17% to 19%).<\/p>\n<h2>The start of the controversies<\/h2>\n<p>Although the ICMS is a state tax, the Brazilian Federal Constitution requires that national guidelines regarding the tax triggering event, taxpayer, and taxable base definition, among other matters, should be established by a national supplementary law. However, such a supplementary law was never enacted to regulate the DIFAL charge.<\/p>\n<p>In February 2021, the Brazilian Federal Supreme Court (STF) ruled on Extraordinary Appeal 1.287.019, and decided that the lack of a supplementary law regulating the DIFAL impaired the DIFAL\u2019s levy by the states, and so charging it was unconstitutional.<\/p>\n<h2>New regulation, new controversies<\/h2>\n<p>Therefore, to regulate the DIFAL and allow the states to charge it, Supplementary Law 190\/2022 was enacted and published on 5 January 2022; and it will become effective 90 days after that publication date.<\/p>\n<p>Although the charge of the DIFAL cannot be made until Supplementary Law 190\/2022 becomes fully effective, controversies have arisen regarding the possibility of the DIFAL being charged before 1 January 2023. This is because the Brazilian Federal Constitution provides that no tax increase may be imposed in the same fiscal year as the law that establishes that tax increase.<\/p>\n<p>Given this situation, several taxpayers have brought this issue to the courts to avoid the revenue split charge in the state of destination occurring until 2023 because, technically, its regular imposition has only happened in 2022.<\/p>\n<p>The legal outcome of this new ICMS controversy on interstate transactions now remains to be seen.<\/p>\n<p><em>Writers: Gabriel Caldiron Rezende, from Machado Associados<br \/>\n<\/em><em>Original: https:\/\/wts.com\/global\/publishing-article\/20220217-brazil-new-regulation-for-icms-tax-on-interstate-transactions~publishing-article?language=en<br \/>\n<\/em><\/p>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":5,"featured_media":5044,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[93,86,6],"tags":[85],"_links":{"self":[{"href":"https:\/\/lataxnet.net\/es\/wp-json\/wp\/v2\/posts\/5043"}],"collection":[{"href":"https:\/\/lataxnet.net\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lataxnet.net\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lataxnet.net\/es\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/lataxnet.net\/es\/wp-json\/wp\/v2\/comments?post=5043"}],"version-history":[{"count":2,"href":"https:\/\/lataxnet.net\/es\/wp-json\/wp\/v2\/posts\/5043\/revisions"}],"predecessor-version":[{"id":5046,"href":"https:\/\/lataxnet.net\/es\/wp-json\/wp\/v2\/posts\/5043\/revisions\/5046"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lataxnet.net\/es\/wp-json\/wp\/v2\/media\/5044"}],"wp:attachment":[{"href":"https:\/\/lataxnet.net\/es\/wp-json\/wp\/v2\/media?parent=5043"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lataxnet.net\/es\/wp-json\/wp\/v2\/categories?post=5043"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lataxnet.net\/es\/wp-json\/wp\/v2\/tags?post=5043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}