STF Reviews ICMS Tax on Inter-Branch Goods Transfers and Modulation Effects

• The Federal Supreme Court began analyzing Theme 1367 which discusses the effects of a decision on ICMS tax on goods transferred between the same taxpayer’s establishments
• The issue stems from a previous ruling that found ICMS on such transfers unconstitutional as they do not involve a change of ownership or commerce
• In a specific case, the Court decided ICMS would not be levied starting January 1, 2024, but exceptions were made for cases filed before April 29, 2021
• Taxpayers have challenged this decision, arguing that the courts had already established that the tax should not be applied
• Six Justices have acknowledged the issue and maintained that ICMS was applicable until the end of December 2023 for those not meeting the exception criteria
• The final judgment on this matter is anticipated by February 3, 2025, with the possibility of Justices changing their votes

Source: klalaw.com.br

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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