Global

Details

  • Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 7/31/2014

Brazil - Control of production, inventory for sales, excise taxes 

July 31: The control of production and inventory (referred to as bloco K or “block K”) in the digital tax bookkeeping system (EFD) for purposes relating to the state-level sales tax and federal excise tax—ICMS-IPI—is intended to provide information relating to the production of and stock of goods held by a company and also held by third parties.

In Brazil:


  • EFD is a digital tax bookkeeping system.
  • A state-level sales tax—Imposto sobre Circulação de Mercadorias e Serviços (ICMS)—is imposed on the physical movement of merchandise. The ICMS also may be levied on inter-state and inter-municipal transport services, communications and electricity.
  • A federal excise tax—Imposto sobre Productos Industrializados (IPI)—applies for manufactured goods.

Companies need to consider challenges presented by these control and reporting requirements, and review the data systems that are used to manage the accounting and tax inventory information in relation to the layout of block K.


Read a July 2014 report (Portuguese) prepared by the KPMG member firm in Brazil: Controle da Produção e do Estoque




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