Seeking an outcome in the National Congress, the base text of the Tax Reform is the result of an approximation of the texts of PECs 45 and 110, through substitute texts, which was also used to meet several demands of the federated entities and the desires of some market sectors.
It is important to emphasize that we are facing a consumption tax reform that encompasses the Tax on Industrialized Products (IPI), the Social Integration Program (PIS) and the Contribution for the Financing of Social Security (COFINS), under the jurisdiction of the Union, as well as the Tax on the Circulation of Goods and Services (ICMS) and the Tax on Services (ISS), under the jurisdiction of the states and municipalities, respectively.
Unification of taxes
The model adopted is called Dual VAT, represented latvia telegram data by CBS (Federal) and IBS (State and Municipal), both taxes will have a series of characteristics in common, including identity of generating facts, calculation bases, hypotheses of non-incidence, passive subjects, immunities, specific, differentiated or favored taxation regimes, in addition to non-cumulative and crediting rules.
Tax Reform in Simples Nacional
Before we delve into the changes that impact taxpayers in the simplified system, it is important to understand the types of non-cumulativity.
There are several possible methods, however, ICMS and IPI, for example, use the tax subtraction method, where only what is highlighted in the tax document can be taken as credit.
PIS and COFINS use the method of subtracting the base from the base, that is, even if the service provider of the simple tax system collects PIS and COFINS at reduced rates, the service recipient of the Real Profit tax system can credit the amount corresponding to their higher standard rates.
The approved base text, however, foresees significant changes. One of them is that, in the case of collection of taxes through a single system (Simples Nacional), the service recipient of these taxpayers will only be allowed to appropriate the credits in the amount collected at the reduced rates, that is, it will not be possible to take the IBS and CBS credit on a base-against-base basis, as is the case today, but only on the amount collected.
This could have a significant impact on companies in other regimes when purchasing from companies that have opted for the Simples Nacional, as the credits will be reduced. The solution to this is the possibility opened up in the approved base text that companies in the unified regime will be able to adopt the new provisions for the collection of CBS and IBS, that is, collect these new taxes outside of the simplified guide.
In this case, they will be able to enjoy the benefits related to the taking and transfer of credits for these taxes in full and normally, using the tax versus tax method, on what was effectively collected in previous operations, like other companies.
This option, then, of collecting IBS and CBS separately, can be particularly advantageous for companies classified under the simplified regime that provide services to other legal entities, that is, that are in the middle of the chain, which can maintain their competitiveness in the market compared to companies under other taxation regimes.
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