Post by account_disabled on Mar 4, 2024 6:33:03 GMT
As recently reported, the Panel of the Superior Chamber of the Administrative Council of Tax Appeals (Carf) changed its understanding to authorize the discount of PIS and Cofins contribution credits on shipping expenses for finished products, on the grounds that such expenses They are essential for the company's economic activity, thus falling within the concept of inputs in accordance with the criteria of essentiality and relevance, established by the Superior Court of JusticeThe legislation authorizes the discount of contribution credits calculated in relation to goods and services used as inputs in the provision of services and in the production or manufacture of goods or products intended for sale (article 3, item II, of Laws no. As there is no legal definition of the term inputs, the framing of items, including freight, in this concept has always generated divergent interpretations from federal tax authorities and taxpayers.
In the judgment of the 1st Section of the Honorable Superior Court of Justice,, under the rite of repetitive appeal, the thesis was established that in order to classify goods and services as inputs, for the purposes of crediting contributions, they must be The criteria of essentiality or relevance of the expense were used, considering the indispensability or importance of a certain item, good or EL Salvador Mobile Number List service for the development of the economic activity carried out by the taxpayer. Freight for the transfer of finished products between company establishments is an essential expense for the development of its economic activity, as it is essential for the completion of sales. All products manufactured by the company are destined for commercialization, which is the economic activity that generates taxable income through contributions.
The transfer of finished products between the company's establishments is carried out precisely to facilitate the sales operation in the region where the establishment is located. Thus, based on the criteria established by the STJ, it is clear that the expense of shipping finished products between the company's establishments qualifies as an input, as it is an essential expense for the development of its economic activity, which was rightly recognized in the administrative decision in reference, which authorized the credit discount on freight . The decision was handed down in case by seven votes to three, representing an important favorable precedent of the last instance in the administrative sphere. However, there is not much to celebrate on the part of taxpayers, as like other topics, this has been the subject of constant changes in the collegiate's understanding.
In the judgment of the 1st Section of the Honorable Superior Court of Justice,, under the rite of repetitive appeal, the thesis was established that in order to classify goods and services as inputs, for the purposes of crediting contributions, they must be The criteria of essentiality or relevance of the expense were used, considering the indispensability or importance of a certain item, good or EL Salvador Mobile Number List service for the development of the economic activity carried out by the taxpayer. Freight for the transfer of finished products between company establishments is an essential expense for the development of its economic activity, as it is essential for the completion of sales. All products manufactured by the company are destined for commercialization, which is the economic activity that generates taxable income through contributions.
The transfer of finished products between the company's establishments is carried out precisely to facilitate the sales operation in the region where the establishment is located. Thus, based on the criteria established by the STJ, it is clear that the expense of shipping finished products between the company's establishments qualifies as an input, as it is an essential expense for the development of its economic activity, which was rightly recognized in the administrative decision in reference, which authorized the credit discount on freight . The decision was handed down in case by seven votes to three, representing an important favorable precedent of the last instance in the administrative sphere. However, there is not much to celebrate on the part of taxpayers, as like other topics, this has been the subject of constant changes in the collegiate's understanding.