Brazil : ICMS amount deducted from PIS/COFINS base

Description	Brazil has a new requirement on the exclusion of ICMS (state sales tax) from the PIS/COFINS (federal contribution on total revenue) tax base. From a certain date, a company can decide to exclude ICMS value from the calculation of PIS/COFINS base. Deduction of ICMS from PIS/COFINS base should be according to the following decisions: Sales: Customer Sales - Exit invoice issued - according to Company decision Customer Returns - Entry invoice issued by customer - according to customer - Original Exit invoice used - according to the original invoice Supplier Returns - Exit invoice issued - according to supplier rule Purchases: Supplier Invoice - Entry invoice - according to supplier rule.
Limitations	This applies to Domestic invoices only.
Country availability	Only available in Country Version Brazil.
KB Article	KB2241743

Description

Brazil has a new requirement on the exclusion of ICMS (state sales tax) from the PIS/COFINS (federal contribution on total revenue) tax base. From a certain date, a company can decide to exclude ICMS value from the calculation of PIS/COFINS base. Deduction of ICMS from PIS/COFINS base should be according to the following decisions:

Sales:

Customer Sales

- Exit invoice issued - according to Company decision

Customer Returns

- Entry invoice issued by customer - according to customer

- Original Exit invoice used - according to the original invoice

Supplier Returns

- Exit invoice issued - according to supplier rule

Purchases:

Supplier Invoice

- Entry invoice - according to supplier rule.

Limitations

This applies to Domestic invoices only.

Country availability

Only available in Country Version Brazil.

KB Article

KB2241743