Acquisition costs for fixed assets – 22998

Document: Acquisition costs for fixed assets

The acquisition cost of fixed assets must consider the effect that tax credits have on market cost.

ICMS:  TAX ON CIRCULATION OF GOODS AND SERVICES

ICMS is a tax whose value is on the basis of the cost of the goods if this tax is due on the operation.

Using a purchase with an ICMS credit option reduces the amount of tax that is in the base from the cost basis of the goods.

Example 01:

Value of goods: BRL 1,000.00

Operation with ICMS: Yes

ICMS Tax Rate: 18%

Operation with ICMS credit: No

Acquisition cost: BRL 1,000.00

Effect: none

Example 02:

Value of goods: BRL 1,000.00

Operation with ICMS: Yes

ICMS Tax Rate: 18%

Operation with ICMS credit: Yes

Acquisition cost: BRL 820.00

Effect: The ICMS credit in the value of BRL 180.00 is deducted from the cost.

IPI: TAX ON INDUSTRIALIZED PRODUCTS

The IPI is a tax whose value is not in the cost base of the goods if this tax is due in the operation.

Using a purchase with the IPI credit option reduces the cost basis of the goods by the amount of the tax that is added to the cost basis when it exists in the transaction, eliminating the effect of the tax on the transaction.

Example 01:

Value of goods: BRL 1,000.00

Operation with IPI: Yes

IPI Tax Rate: 5%

Operation with IPI credit: No

Acquisition cost: BRL 1050.00

Effect: The IPI value is added to the cost of the goods because it does not make up the cost base.

Example 02:

Value of goods: BRL 1,000.00

Operation with IPI: Yes

IPI Tax Rate: 5%

Operation with IPI credit: Yes

Acquisition cost: BRL 1000.00

Effect: The IPI value has no effect on the cost of the goods, as if it were added up and then taken away as a result of the credit.

TAX COMBINATION AND ITS EFFECT ON THE ACQUISITION COST

To assess how each tax influences the cost of goods, the value must be calculated by evaluating the original basis before the levy of the tax to be evaluated, and before the levy of the effects of other taxes.

Example 01:

Value of goods: BRL 1,000.00

Operation with ICMS: No

Operation with IPI: No

ICMS Tax Rate: 18%

IPI Tax Rate: 5%

Operation with ICMS credit: No

Operation with IPI credit: No

Acquisition cost: BRL 1000.00

Effect: As the operation does not have taxes, they do not influence the acquisition cost values.

Example 02:

Value of goods: BRL 1,000.00

Operation with ICMS: Yes

Operation with IPI: Yes

ICMS Tax Rate: 18%

IPI Tax Rate: 5%

Operation with ICMS credit: No

Operation with IPI credit: No

Acquisition cost: BRL 1050.00

Effect 01 – ICMS: Since the operation calculates ICMS but does not have the tax credit, there is no change in cost (BRL 0.00)

Effect 02 - IPI: Since the operation calculates IPI, but does not have the tax credit, there is the addition of the IPI value to the cost (+ BRL 50.00)

Result: BRL 1000.00 +/- BRL 0.00 + BRL 50.00 = BRL 1050.00

Example 03:

Value of goods: BRL 1,000.00

Operation with ICMS: Yes

Operation with IPI: Yes

ICMS Tax Rate: 18%

IPI Tax Rate: 5%

Operation with ICMS credit: Yes

Operation with IPI credit: No

Acquisition cost: BRL 870.00

Effect 01 – ICMS: Since the operation calculates ICMS, but has the tax credit, there is a reduction of the ICMS value in the cost ( BRL -180.00)

Effect 02 - IPI: Since the operation calculates IPI, but does not have the tax credit, there is the addition of the IPI value to the cost (+ BRL 50.00)

Result: BRL 1000.00 +/ BRL 180.00 + BRL 50.00 = BRL 870.00

Example 04:

Value of goods: BRL 1,000.00

Operation with ICMS: Yes

Operation with IPI: Yes

ICMS Tax Rate: 18%

IPI Tax Rate: 5%

Operation with ICMS credit: Yes

Operation with IPI credit: Yes

Acquisition cost: BRL

Effect 01 – ICMS: Since the operation calculates ICMS, but has the tax credit, there is a reduction of the ICMS value in the cost ( BRL -180.00)

Effect 02 - IPI: Since the operation calculates IPI, but has the tax credit, there is no change in the cost (BRL 0.00)

Result: BRL 1000.00 +/ BRL 180.00 + BRL 50.00 = BRL 820.00