Automotive and auto parts: the tax rule changes at every link in the chain and SAP has to keep up invoice by invoice

No. Protocol 41/08 applies only to parts in Annex II of Agreement 142/18, for automotive use, when the destination is a signatory state and outside the six excluded CEST codes. Shipment to an industrial establishment is left out. So is shipment to another establishment of the same owner that is not a retailer, unless the destination state has a different rule.

Under the text of the protocol, ST does not apply to shipments to an industrial establishment. The same part sold to a wholesaler or a retailer, in a signatory state, falls under the rule. That is why classifying the recipient is tax data, not a master data detail.

It starts from the maximum retail price or, if there is none, the price suggested by the maker or importer, plus freight. Without those values, it uses the sender's price with charges and the adjusted MVA. The original MVA read is 36.56% in loyalty cases and 71.78% in the others.

The protocol sets the 9th of the month after the goods leave, in favor of the destination state (clause 4). The payment slip and the local rules of each state were not read for this page.

Since 01/01/2024, no. LC 204 barred ICMS on a shipment to an establishment of the same owner and kept the credit. The same law allows, as an option, treating the transfer as a taxed operation. The choice is the client's.

When the good is imported and was not processed, or when the product's import content is above 40%. There are exceptions, such as a good with no domestic equivalent and the basic production process. The FCI number goes on the invoice, under Agreement 38/13 (clause 5).

Art. 11-C of Law 9,440 refers to sales up to 31/12/2025, and LC 214 extended the IPI benefits to 31/12/2026. After that, approved projects move to the presumed CBS credit, with a term up to 2032 and falling percentages. Art. 542, VII, of LC 214 repeals arts. 11-A to 11-C of Law 9,440 from 01/01/2027. Law 9,826 does not appear in the list in art. 542 in the text read.

Until 31/12/2026, art. 3 of Law 10,485 continues: 1.65% and 7.6% on sales to a carmaker or industrial company, 2.3% and 10.8% on sales to a reseller or consumer. LC 214 repeals these articles from 01/01/2027 and provides a presumed CBS credit on stock, under the conditions of art. 381. The credit must be taken by the last day of June 2027, in 12 monthly installments, and offsets only CBS (art. 381, § 4).

In the text read, Annex XVII lists vehicles (87.03 and part of position 8704, except trucks), aircraft, vessels, tobacco products, drinks and minerals. Auto parts are not listed. The rates depend on an ordinary law, and that law was not read. The tax applies only once, with no use of credit from an earlier stage (art. 410), and the taxpayer is the maker or the importer (art. 424).

LC 214 covers the suspension form of drawback (art. 90, § 3), but says the exemption and refund forms of drawback do not apply to IBS and CBS (arts. 90 and 91). If the good stops being used in the exported product, the tax becomes due.

It depends on the granting act and on how it fits in Agreement 190/17, which sets maximum periods of use, such as 31/12/2032 for benefits that promote industrial activity. The act of each state was not read. Keeping or swapping the benefit is the client's choice.

For an industrial establishment of a company with revenue of BRL 300 million or more, full bookkeeping began on 01/01/2019 in CNAE groups 291, 292 and 293. For other cases, the classification stays not checked. Confirm your CNAE before assuming the obligation. In the Practical Guide, K200 reports stock, K230 and K235 the production and inputs by order, K250 and K255 the processing done by third parties (K255 is mandatory when K250 exists) and K260 the rework in the same establishment. Check the current version of the Guide on the SPED portal.

Decree-Law 288/1967 exempts from IPI the goods made in the Manaus Free Trade Zone (art. 9). The exemption does not apply to the goods in art. 3, § 1, including passenger cars, but § 2 of art. 9 makes an exception for quadricycles, tricycles and their parts. LC 214 also leaves passenger cars outside the favored regime of the Free Trade Zone (art. 441, d). How this applies to your plant is the client's analysis.

The list of plants and distribution centers by state, the two or three destinations with the highest volume, the latest ST or credit difference, and the SAP version. From that list come the first scope and the order of the work.