On May 13, 2021, the Brazilian Supreme Court (STF) ruled that the exclusion of ICMS (a Brazilian state tax) from the calculation base of PIS/COFINS (a Brazilian social security contribution) would be effective from March 15, 2017. The practical effect of this decision is that companies that have not yet filed a lawsuit can claim their retroactive credits up to that date (March 15, 2017).
 
Following the Supreme Federal Court's ruling on RE No. 574.706, with general repercussions, the possibility of obtaining significant gains, in a safe manner, was opened up with the thesis of ICMS restitution in the calculation basis of PIS/COFINS.
 
In fact, the Supreme Federal Court (STF) ruled in a case with general repercussions that: "ICMS (Brazilian state sales tax) does not form part of the tax base for the incidence of PIS and COFINS (Brazilian federal social security contributions)," the modulation of which is effective from March 15, 2017, the date of the appeal's judgment. Furthermore, it was decided that the ICMS amount shown on the invoice is what should be excluded from the tax base.
 
It is important to highlight that companies may be losing money and should file lawsuits as soon as possible to recover these overpaid amounts.
 
For further information, please contact our team!
 
Source: RE No. 574.706 – STF
 
News commented on by Angela Sartori, Lawyer and Judge of the Tax and Fees Court of the State of São Paulo, Graduated He holds a law degree from PUC/Campinas. OAB/SP No. 135,642