SPECIAL REGIME OF THE SUBSTITUTE TAXPAYER ES ICMS-ST

The state of Espírito Santo is, admittedly, a unit of the federation that supports ventures of the most diverse segments, having started its range of benefits through the institution of FUNDAP, incentive for foreign trade operations.

Following this philosophy, the development of business and generation of employment and income, for several years has been offering one more important benefit, the Special Regime of the Substitute Taxpayer (called simply as REOA).

By granting the Substitute Taxpayer’s claim, the wholesale company or even retailer (it is necessary to analyze case by case) becomes the first link in the chain of ICMS-ST (TAX SUBSTITUTION), failing to acquire its merchandise with more this tax.

The ICMS-ST calculation system, as established in its legislation places the importing industry as the first link in its chain, so that the Wholesaler or Retailer already receives its goods with normal ICMS plus ICMS-ST, which will greatly until they reach final consumers.

The companies that own this Special Regime can acquire their products without the charge of the ICMS-ST, which provides greater competitiveness compared to competitors.

It is important to emphasize that companies that are beneficiaries of Compete Wholesaler and Compete Sale Non-Presencial (e-commerce), must necessarily request REOA for the operations with goods listed in the ST list to be acquired without retention, thus being able to enjoy all of these incentives (see Fences of Compete Wholesaler and Compete E-commerce in other articles).

One of the major problems of the TS is that there is a presumption of profit when stipulating a Value Added Margin (MVA) and parallel to this there is also the early collection of ICMS since the industry or the importer, as the initial link of the chain , as a general rule, it is necessary to calculate not only the ICMS known as “normal” but also the ICMS-ST on the MVA and to highlight the respective collection when issuing the NF to the next taxpayer (ICMS anticipation of future operations).

Companies that operate with goods acquired with ST but that are not subject to this tax in subsequent operations, when installed in the ES and possessors of this Special Regime transform the old cost in tax gain.