An important change is on the way. On July 1, ICMS Agreement No. 142/2018, which provides for the tax substitution regime, used by the States as a mechanism to facilitate the tax inspection, is now applied with important changes regulated by ICMS Agreement No. 38/2019.

Among the main changes can be identified alterations, inclusions and revocations of products that reach important industries, such as pharmaceutical (contraceptive), food (snacks based on corn flour, charque and dried meat), personal hygiene (wipes and soaps) and electronics (smart cards).

The new agreement also modifies the way in which the reimbursement of ICMS withheld at the beginning of the chain of operations will be done. The recovery must be made through the issuance of exclusive invoice (NF-e) for this purpose, depending on the criteria established by the federated unit of the taxpayer who is entitled to compensation.

In the Federal District Decree signed on the 10th, it withdraws the advance collection of the Tax on Circulation of Merchandise and Services (ICMS) for 14 specific items, as a way to stimulate investments and increase competitiveness in the retail sector. In this way, small companies and microentrepreneurs of the retail sector of cosmetics of the DF have won a stimulus for the resumption of growth.

This charge was previously made by the Tax Replacement scheme for beauty products. The change of charge will be applied to a list of 14 essential products for the category, such as shampoos, conditioners, manicure tools, soap and toilet paper.

“We know the social impact of this measure, especially on the capacity to generate income and employment that this sector brings to the city and we want to improve working conditions in the entrepreneurial environment, promote competitiveness and increase the advantages in the local market,” said the Governor Rodrigo Rollemberg.

Before the change, since 2013, the stores paid advanced taxes, above the National Simples. “The charging has caused many to close the doors and move from one federal unit to another with more advantages,” he recalled.

According to the entity, the Brazilian cosmetics market is the third largest in the world. In Brasília, spending on products of the type is 40% above average
Fonte: Thomson Reuters Brasil e NBN Brasil