Taxpayer

Individuals or legal entities which, normally or by volume, have a commercial purpose, carry out transactions relating to the transfer of goods, or provide inter-state or intercity transport services or communication services, is a taxpayer. Or, we also say that the natural person or legal entity which, even if is not regularly, imports goods, is a taxpayer.

Taxable Event

The ICMS has, as a taxable event, the occurrence of the fact in which its application is necessary:

The operation relating to the circulation of goods or the provision of interstate or intercity transport services or communication services, even if the operation or provision begins abroad.

The taxable event takes place when there are:

1. Industrial establishment goods outflow, commercial, agribusiness producer, energy generator, mineral extractor;
2. Receiving of foreign goods;
3. Provider of intercity and interstate transportation services: road, river, and train;
4. Communication service rendering: phone, fax, etc.;
5. Usage, consumption, and integration of fixed asset goods acquired for trading or industrialized by the same establishment;
6. The inflow of goods targeted to usage, consumption, or active, coming from another federation unit;
7. Use a service started in another federation unit, not related to operations or renderings reached by tax incidence.
8. Goods property transmission that does not continue through the issuer establishment.

Some notes must be taken into consideration in relation to ICMS charges:

ICMS for transport services is paid to the State of origin of rendering of services;

On import ICMS, the collection is for the destination State of the good;

Example:

Clearance in Vitoria, importing agent in São Paulo, goods destination in Porto Alegre - ICMS must be paid to Rio Grande do Sul.

Purchase of goods from another State for consumption or fixed asset, the rate difference is paid in the destination State;

To collect ICMS consider any taxpayer, person, or company that skillfully practices the transfer activity of goods, except in the case of importing, when ICMS must be collected.

ICMS Calculation

Calculation basis

The ICMS calculation basis is the same as the goods amount plus the freight, insurance, and other additional expenses:

• For import, the calculation base is equal to the added value of Import Tax and IPI - Industrialized Product Tax.
• In transportation services, the calculation base is the total amount of the provision.
• For acquisitions coming from other States for use or consumption, or fixed assets, the calculation basis is the operation amount, applying the internal tax rate percentage of the State of São Paulo.

The ICMS is a tax composing its own calculation basis.

Observe the demonstration of an operation run under a percentage of 18%:

ICMS Calculation

The ICMS calculation is typically monthly and periodic, but the tax authorities may determine the tax amount to be monthly collected.

The ICMS expiration date is known according to the CNAE (National Code of Economic Activity), obtained when upon State Registration. That way, the taxpayer, when obtaining their State Registration, receives a CNAE, which determines the expiration date of the ICMS, and as a result of this registration, the taxpayer receives a CPR (Code for Collection).

Example:

CPR 1031 = The ICMS must be collected up to the 3rd working day subsequent to the calculation.

The collection is performed through the Tax Form for Collection of State Income (GARE).

The goal of the ICMS Calculation is to obtain the ICMS balance (debit or credit) related to the taxpayer's operations, as well as calculate the ICMS balance coming from the Tax Substitution (ST).

The tax is calculated upon a period selection, enabling the input of other credits and debts and their reversals, besides the credit balance of the previous period.

When generating the calculation, the system creates a file with the following characteristics:

where:

• The calculation month (*) is directly related to the alphabetic sequence, that is A = 1 = January, B = 2 = February, C = 3 = March;
• IC (**) corresponds to the ICMS
• The calculation period (***) corresponds, respectively, to: 0 = monthly; 1,2 = fortnightly; 1,2,3 = every 10 days;

As an example, some items subject to the tax substitution (ST) system are:

• Operations with tobacco and its manufactured by-products;
• Operations with new vehicles, among others.

The ICMS calculation basis due by tax substitution always corresponds to the maximum or single sales amount to be practiced by the substitute taxpayer (purchaser), fixed by the manufacturer or competent authority.

If this amount does not exist, the calculation basis is obtained based on the price by the substitute taxpayer, including the IPI amount, freight, and other expenses debited or collected from the recipient, besides the installment resulting from the application, on this estimated amount, of the profit margin percentage for the goods subject to retention.

The ICMS value to be withheld is the difference between the Calculated Tax with the application of the current rate on internal operations, on the Calculation Basis, and the Tax Due by the sender's operation.

In relation to the interstate operation with goods subject to tax substitution, the rule for determining the ICMS calculation basis is the same, considering that the tax rate due on the operation is the interstate one, while the tax rate to be applied on the calculation basis for retention is the one estimated for internal operations in the destination State.

The substituted taxpayer is the one that receives the goods with ICMS withheld by the substitute taxpayer.

When performing internal outflows with these goods, except by provision existing in the legislation, no tax collection is required, since it was already withheld and paid for tax substitution (ST).

Rate and rate differential

The ICMS is a taxation of State jurisdiction and, as each State has its specific treatments and legislations in its territory, the tax rates vary according to the State to which they refer.

The tax rates relate to products and services and States involved with transactions, among other factors.

Example of tax rates from the State of São Paulo:

Rate Differential

This differential is calculated according to the value of ICMS in the internal operation (the value of ICMS calculated in the tax document).

If a reduction occurs in the calculation base in the interstate operation, it should be considered, because it is the value detailed in the tax document that covers the entry of the goods.

Example of circulation of goods from Sao Paulo to Pernambuco:

Treatments used in the ICMS Calculation

Table 53 - Numbering of taxes bills, for keeping the sequence numbering of ICMS bills;

Refer to the parameters in Additional Information that are responsible for:

• Enter the nature of ICMS bills generated in the Financial module;
• Identify the code given to the State Secretariat for the collection of ICMS.
• Register the standardized entry codes for accounting.
• Enter the nature of the complementary ICMS bills generated in the Financial module;
• Enter the nature of the bills related to the Special Fund for Combating Poverty (FECP) generated in the Financial module.
• Indicate if the bills to be paid, generated in the calculation of the ICMS, should be presented on the screen after confirming the calculation for maintenance (an option in which it is possible to view/change the bills generated by the calculation). The system displays on screen all the bills payable generated by the calculation of ICMS. With this, it is possible to change any information about the bill generated at the time of the ICMS calculation (history, nature, or prefix).
• Define the prefix of Accounts Payable (Local ICMS) generated in the ICMS calculation.
• Treat the calculation of the differential rate ICMS. Enter if the base of the complementary ICMS should be reduced as the regular ICMS. The calculation can be made by the value of the operation, disregarding the reduction in the calculation base.
• Indicate if the name of the calculation file for the previous period should be automatically entered by the routine. The file name of the previous period is automatically selected only when the name of a file is not entered in the Previous Period File? question according to the parameter configuration.

ICMS Calculation Entries - Tax Document

The ICMS Calculation routine also received new implementation to be adjusted to the SPED operation.

Besides calculating transactions of the period, entries concerning tax documents are listed and presented.

Manual adjustments can also be made, provided they are previously registered as Calculation Adjustments (Adjustment Tp. = 2).

Routine parameterization is in the same format.

After setting the parameters, it is verified if a calculation already exists for the selected period, and when found, two options are displayed:

• Redo - By selecting this option, the previous calculation is retrieved and displayed on the screen for new adjustments.
• Delete - This option is only allowed if no bills exist generated by the previous calculation. Here, the calculation is generated without considering data previously generated.

In the Calculation - ICMS and Calculation - ST tabs, in addition to the existing fields, the EntryCode column is available.

All entries used in documents within the period of the calculation are presented according to the definition of the document.

Besides entries loaded from documents, manual adjustments can be made in the calculation using the Add Row option.

After confirming the calculation, bills, and GNREs concerning calculation, as well as calculation files (with IC or ST extension), are generated.

Besides calculation files, the CDH table (ICMS Calculation of the period) is fed, from which information about previous calculations is searched for reprocessing or query.

Generating the ICMS Calculation

1. In ICMS Calculation, click Parameters and fill out data according to the field help instructions.
2. Adjust the data in accordance with the instructions described in item Main Fields.
3. Check and confirm data.
4. Repeat the confirmation, and the system displays a new screen subdivided into tabs:
   • ICMS - Inflows
   • ICMS - Outflows
   • ST - Inflows
   • ST - Outflows
   • ICMS calculation
   • ST calculation
   • Additional Information
   • Calculation-Fomentar

See also the features available in Other Actions.

Tab - ICMS inflows

This tab presents the summary of the incoming invoices organized in columns, totalized, and sorted by CFOP.

Tab - ICMS Outflows

This tab shows the summary of the outgoing invoices organized in columns, totalized, and sorted by CFOP.

Tab - ST inflows 

This folder displays the totalization of the Calculation Basis and the Tax Credited, by State, of the interstate inflows of products under the Tax Substitution system.

Tab - ST Outflows

This folder displays the totalization of the Calculation Basis and the Tax Debited, by State, of the interstate inflows of products under the Tax Substitution system.

Tab - Calculation - ICMS

The data is presented in columns containing:

Row, Code, Description, Value, GNRE, and Expiration Class.

Tab - Calculation - ST

The data is presented in columns containing:

Row, Code, Description, Value, GNRE, and Expiration Class.

Tab - Additional Information

This folder displays the following values related to the ICMS:

 We also see on this screen the Tax Due Date, the Collecting Agency, and the space for Notes.

Tab - DIFAL/FECP

This tab shows the data displayed in columns: Status, DIFAL to be collected, Credit DIFAL Balance, FECP to be collected, Credit Balance, and FECP/Special Debits.

Tab - Special Debits

This tab displays the data in columns: Row, Code, Description, Value, GNRE/Maturity Class.

Other Actions/MThread Log

In this option, the system displays the Processing Log screen related to the ICMS calculation.

The Warnings and Processing Errors icon are at the bottom.

Click Search to find specific items, or Details to view other information for the selected item.

Other Actions/Captions

Click this option to display the table for the system captions.

Simples - Santa Catarina

This routine enables the calculation of the tax collectible from micro and small-sized businesses in the State of Santa Catarina which opted for the Simples System.

To use the Simples/SC benefits, the micro and small-sized business must obtain their previous framing based on the annual gross income in the following manner:

• Equal or lower than BRL 160,000.00 (one hundred and sixty thousand reais) is considered micro business;
• Higher than BRL 160,000.00 (one hundred and sixty thousand reais) and equal to or lower than BRL 2,000,000.00 (two million reais) is considered a small business.

The micro and small businesses are monthly subject to the collection, by the ICMS, of the equivalent amount:

It is considered a Taxable Revenue with the value corresponding to:

• goods sales and services rendering not involved in the Cities tax competence;
• non-operational incomes, excluding from them the financial incomes of interests, indexation, and discounts;
• revenue made by all sites of the same company, inside or outside the State of Santa Catarina;
• Own revenues, and revenues made by trading funds or commercial/industrial sites acquired by the company when it is exploiting under the same corporate name or another one;
• Sales of assets acquired for integrating the fixed assets, except when they occur after the regular use, considering a period not less than 12 months.

According to the current legislation, the taxpayers fitting this system, when performing goods outflows or services rendering dedicated to taxpayers not fitting to the same system, must emphasize the ICMS relating to the operation for the purchaser to be credited of the value.

The ICMS detailed in the tax document must be registered in the Tax Debited column of the Outflow Records, but it must not be displayed in the ICMS calculation, since the calculation of the tax collectible must be performed based on the Taxable Revenue of the period, as previously described.

Therefore, a new process was developed to calculate the ICMS for companies choosing the Simples/SC performing operations for both types of companies.

Credit reversal - Pernambuco according to Section 34, III, of Decree No. 14.876/91 - State of Pernambuco

By the ICMS Calculation, it is possible to calculate ICMS credit reversal based on inflow operations.

The following paragraph has been copied from the Section abovementioned.

The use of reduced rate imports a ban on the use of the full tax credit for the purchase of the goods. Thus, in relation to the outflows contemplated with a reduced rate, the taxpayer must reverse the portion of the tax credit proportional to the reduction.

When, at the domestic outflow, the rate of 7% is levied, the portion of the usable tax credit shall correspond to the following percentage:

X = 41.18%

Therefore, the percentage corresponding to 58.82% (100% - 41.18%) should be reversed.

When, at the domestic outflow, the rate of 12% is levied, the portion of the usable tax credit shall correspond to the following percentage:

 X = 70.58%

Therefore, the percentage corresponding to 29.42% (100% - 70.58%) should be reversed.

Copy the P9AUTOTEXT.PE file to the directory corresponding to \SYSTEM.

1. In the TIO File (Types of Inflow/Outflow), enter the percentage to be reversed in a said item with the levy of ICMS in the Rev % field (F4_ESTCRED). The credit reversal is only calculated if a percentage is entered in this field.
2. In the following fields, the system updates the credit reversal value when purchasing a particular good.

• Rev. Vl. (F3_ESTCRED)
• Rev. Vl. (F1_ESTCRED)
• Rev. Vl. (D1_ESTCRED)
• Rev. Vl. (FT_ESTCRED)

3. In the ICMS calculation, after the routine is processed, see, in the Additional Information tab Row 031, the total amount of the credit reversal. To display this credit value in Credit Reversal in the ICMS-Calculation tab, use the auto-filling available in the file P9AUTOTEXT.PE.

4.This configuration automatically posts the calculated value in the following way:

003.01 - REV. REF SECT. 34, III, OF DECREE No. 14,876/91.

Calculation of Credit Reversal for ICMS - Federal District according to subsection V of section 60 of Decree 18,955 RICMS-DF

1. In ICMS Calculation, complete the routine parameters and confirm.
2. In the ICMS Calculation tab, the value of credit reversal is displayed, calculated as follows:

(Value of unitary calculation base of the incoming invoice * inflow rate) * (quantity of outgoing invoice/100) * reduction percentage of outflow ICMS base.

Example of calculation:

• An incoming invoice with calculation base equal to BRL 12,500.00, a rate equal to 7%, and a product quantity of 250.
• Outgoing invoice, with reduction of 16.67, a quantity equal to 10.

((12500/250) * 0.07) * (10/100) * 16.67 = 5.834 – The system does not round it

The value of the credit reversal is 5.834.

Reversal of debits in the provision of Transport Services - Minas Gerais according to RICMS - MG Decree 43,080 of 2002, Annex XV Section 4.

Copy the P9AUTOTEXT.MG file to the corresponding \SYSTEM\ directory (if version 8.11 and 10). The file is used only for taxpayers in the state of MG.

Incentive Credit - Manaus

Based on the inflow and outflow operations with goods encouraged in the State of Amazonas, the system enables the Manaus Incentive Credit calculation.

Finished goods, when destined for civil construction companies or similar works, as well as operations with electronic equipment destined for production, are examples of products/operations that give the right to the Incentive Credit.

The industries with the right to the Incentive Credit apply the reimbursable credit amounts in their ICMS calculation, thus checking the final balance of the period.

1. In the Products File, assign the corresponding NCM code. The calculation of the Incentive Credit is carried out for the products that have the percentage informed. In the field, indicate if the percentage used in the Outflow is the one reported in the product record or the NCM x Customer Type binding in the MV_CRDM001
2. In the Customers File, enter the framework in the Incentive Credit: 1 = Not Encouraged; 2 = Construction Company; 3 = Others;
3. The calculation of the incentive credit is made only to those registered for transactions with Constructing Company (2) or Others (3).
4. In the TIO File routine, assign whether or not to calculate the incentive credit by entering in the field the form of calculation: 1 = Do Not Calculate;2 = Electronic Equipment; 3 = Construction.
5. The Incentive Credit calculation is only performed in the Inflow and Outflow Types registered for transactions with Electronic Equipment (2) or Construction (3).
6. In the Inflow/Outflow Transactions: Type the inflow and outflow operations using the products and TIO registered, as described in topics 3 and 4.
7. In the ICMS Calculation: Fill in the respective questions, and, in the Generate Incentive Cred. question, enter Yes.
8. After processing the routine, the total amount of the Incentive Credit is displayed in the Additional Information tab, row 024. If you want to display the credit value in Other Credits of the Calculation-ICMS tab, use the self-filling provided by the file P9AUTOTEXT.AM.
9. This configuration automatically enters the value calculated as follows: 006.01 - Incentive Credit. If it is necessary to edit the description or the item placement, edit the file P9AUTOTEXT.AM.
10. In the ICMS Calculation Record P9: Fill in the respective questions, and, in the Print Incentive Credit question, enter Yes.
11. After processing the routine, the information related to the Incentive Credit is displayed in the Tax Calculation Summary, Additional Information Chart, separated by Reimbursable Percentage and Amount, according to the current legislation requirements.

Statute no. 4533 - 2005 - Rio de Janeiro

This routine contemplates the State Statute No. 4.533 of April 4, 2005, which regulates the economic recovery policy of the cities of Rio de Janeiro, providing a special tax process to the companies.

The companies allowed a special process apply a specific tax rate on the monthly billing amount, deducing the amount obtained from the ICMS collectible of the period.

For Statute no. 4533 to be properly contemplated, it is necessary to perform the following procedures:

In the Configuration module, option Environment/Files/Parameters, observe the configuration of the following parameter:

For the ICMS calculation, only the Internal and Interstate Outgoing Invoices are considered, not considering the Return Invoices and forwarding them to Processing.

In the ICMS Calculation: Fill in the respective questions and confirm the processing.

Use of ICMS Credit - Outgoing Operations for Taxpayer Replaced pursuant to Section 271 of RICMS - SP.

Section 271 - The reimbursement of the value of the withheld tax or the installment of the withheld tax, provided for in Section 269, subsection IV, does not prevent the use of the credit by the taxpayer, when admitted, of the tax levying on the outgoing operation promoted by the taxable person for substitution by entering it in the book ICMS Calculation Record, in the table Tax Credit - Other Credits, with the expression Credit related to the proper operation of the substitute (Statute no. 6,374/89, section 36, with amendment of Statute no. 9,359/96, section 2nd, I). 

• Paragraph 1 - In the event that the goods have been received from another replaced taxpayer, the value of the tax levying until the previous operation is calculated by applying the internal rate on the basis of calculation that would be attributed to the sender's own operation if it was subject to the common taxation system. 
• Paragraph 2 - The value of the credit referred to in the previous paragraph cannot be higher than that resulting from the application of the internal rate on the value of the basis of calculation of the withholding made by the taxable person by substitution. 
• Paragraph 3 - In the impossibility of identifying the incoming operation of the goods, the replaced taxpayer may consider the value of the credit corresponding to the most recent entries, sufficient to carry the amount involved. 

Credit granted - Sao Paulo according to Decree no. 56,018 of July 16, 2010, Decree no. 56,855 of March 18, 2011, and Decree no. 56,874 of March 23, 2011, of the State of Sao Paulo.

Credit is granted to sites or companies in the State of Sao Paulo according to the Legal Framework.

Preconditions

Before generating the credit granted:

1. The configuration file P9AUTOTEXT.SP must be within the \SYSTEM directory of Microsiga Protheus.
2. In the TIO File, assign the percentage of the Credit Granted (F4_CROUTSP) applied to the item of the invoice as ruled by the legislation.
3. The MV_CROUTSP parameter must be filled in with the four (4) first digits of the NCM code that includes Decree no. of July 16, 2010, and Decree no. 56,855 of March 18, 2011, separated by slash ( / ) so that the System displays the value of the credit granted automatically using the P9AUTOTEX.SP routine.

After these settings, generate the incoming and outgoing transactions so that the Credit Granted field is automatically fed according to the application of the configured percentage.

To generate the Granted Credit value:

1. In ICMS Calculation, fill out the questions of the routine.
2. After processing the routine, the Credit Granted amount is displayed and presented in the tab:

• ICMS Calculation, Row 006/Code 007.32 – Credit Granted – Section 31 of Annex III of the RICMS, and, in the Additional Information tab, row 045, the value of the credit granted.
• ICMS Calculation Row 006/Code 007.33– Credit Granted - Section 32 of Annex III of the RICMS, and, in the Additional Information tab, row 045, the value of the credit granted.
• ICMS Calculation Row 006/Code 007.34 – Credit Granted - Section 33 of Annex III of the RICMS, and, in the Additional Information tab, row 045, the value of the credit granted.
• ICMS Calculation Row 006/Code 007.35 – Credit Granted - Section 34 of Annex III of the RICMS, and, in the Additional Information tab, row 045, the value of the credit granted.

Partial ICMS Tax Anticipation, according to the legislation contemplated, refers to Decree no. 8,963 of February 11, 2004 – BA Ordinance SF 84 of April 29, 2004 – PE Decree no. 52,515 of 2007 – SP Decree No. 52,742 (DOE of February 23, 2008), Decree No. 19,714, (DOE of August 4, 2003) – MA

It performs the treatment to calculate the credit when referring to the Tax Anticipation of ICMS in the incoming operations with differential rate and margin of Solidario, aimed at all taxpayers who make purchases from other States and that have an operation rate of less than the internal rate, or the internal rate greater than 12% (adjusted ST-VAT).

Requirements: In the TIO records, enter if the operation refers to the Tax Anticipation of ICMS.