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The regulation of this tax is the responsibility of each State and the Federal District, which stipulate the percentage charged in their regions of operation. Thus, each location has its own tariff, which may raise doubts for those who sell products to other federative units (UF) this is a subject that we will discuss later. The www.taxfyle.com/sales-tax-calculator is essential there.
How to calculate the ICMS?
To begin, it is necessary to know what rate is practiced in the state in which your company operates. In a normal situation, in which the sale is made at the same FU, the formula is simple:
Product price X Rate practiced in the state = ICMS value of the goods
Example: A product costs R $ 100 reais and is subject to an 18% tariff (applied in several states such as São Paulo, Rio de Janeiro and Paraná), the calculation would be as follows:
$ 100 X 18% = $ 118
In other words, in this case, the ICMS value for this product would be R $ 18, totaling R $ 118.
And when do I carry out interstate ICMS transactions?
When the company operates in different states, attention must be paid to this distinction between the rates charged in one location and another.
In these cases, the DIFAL – Rate Differential, created to reduce the collection inequality between one state and another, is applied, since, by offering lower values, a region ends up being more attractive to business and ends up concentrating income in just one locality.
In the past, the full value of the ICMS was left with the state in which the merchandise was sold. However, with the implementation of the ICMS Agreement 93/2015, the tax began to be shared gradually between the locality of origin and the UF of destination of the product.
In 2018, 80% of the value of the ICMS should go to the state of destination of the product, while the remaining 20% will remain with the UF of origin. From 2019 the tax amount will be paid in full to the place where the goods were purchased. Contabilizei’s customer is at peace with DIFAL, this service is included in our services.
Incidence of ICMS
To make it easier to understand, we can say that there are 3 types of ICMS:
- The normal ICMS, which is part of the Simples Nacional tax set and the entrepreneur already pays on the DAS tab
- The ICMS tax substitution, which is levied on some goods and interstate transactions
- The differential ICMS rate that is levied on the purchase of goods from other states
- In a practical way, if you buy your goods from suppliers in other states, you must collect the differential ICMS rate
If the products you sell are subject to tax substitution, ICMS must also be paid.
Which operations are subject to ICMS?
Virtually all. The ICMS is one of the main sources of revenue of the states, since it applies to both individuals and companies. In the case of companies, this tax is levied on these movements:
- Sale and transfer of products
- Transport between Brazilian municipalities or states, whether of goods, people or values
- Import of goods, even for own consumption and not for the purpose of resale
- Provision of services abroad
- Telecommunication services
That is, if your business sells products, such as an e-commerce or physical store, provide telecommunication services or consult with individuals, or legal entities abroad, it is necessary to collect this tax.
