New Judgments at Superior Court of Justice Regarding PIS, COFINS, and ICMS-ST Calculation Bases

• The Superior Court of Justice (STJ) concluded the judgment of Special Appeals 1.896.678 and 1.958.265.
• The judgment questioned whether the State VAT due in Tax Substitution (ICMS-ST) should be included in the Contributions to PIS and COFINS calculation bases.
• The Ministers unanimously decided that the ICMS-ST should not be included in the basis for calculating the contribution to PIS and COFINS.
• This decision applies the understanding held by the Supreme Court (STF) in the “thesis of the century” ruling.
• The STF ruled that the regular ICMS must be excluded from the PIS and COFINS calculation base.
• The decision has binding effects and has not yet been publicized.
• The document should specify the quantification of the ICMS-ST to be excluded from the tax credits calculation base.
• The Superior Court of Justice recently decided to refer other similar cases for judgment as repetitive appeals.
• The upcoming decision will have binding effects on these cases.
• The discussion involves the right to PIS/COFINS tax credits on ICMS-ST collected by the substitute party.
• The Brazilian Federal Revenue believes ICMS-ST should not generate PIS/COFINS tax credits.
• The STJ panels differ on this possibility, and the recent decision aims to settle the discussion.

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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