2 Tax Changes

In the Brazilian tax system, many taxes can be applied on the same item. The tax system also includes:

• There are indicators for exempts or reduced taxes.

• Taxes can differ based on a ”to” and ”from” location for inventory movement transactions.

• For the same item, suppliers can have different taxes and different rates.

This chapter describes the update to the VAT Maintenance form to implement the Brazilian taxation process. It includes the following section:

• Editing VAT Codes

Additionally this chapter describes the changes made for determining the average tax rates for sale transactions.

Editing VAT Codes

The VAT Codes Maintenance window enables you to view and maintain a list of value added tax (VAT) codes.

To edit the VAT Codes, do the following:

Navigate: From the RMS Start Menu, select Control, then select Setup. From Contents Of Setup, select VAT Codes Maintenance.

• In the Contents Of VAT Codes Maintenance window, click Edit. The VAT Code Maintenance window appears.

  Figure 2-1 VAT Code Maintenance Window

  
  

• For Brazil, a new indicator, Included in NIC, has been added to the VAT Code Maintenance window.

  Select this check box to include the particular VAT code in the Negotiated Item Cost.

  
  

  Note: The Rates button is disabled for Brazil and VAT Codes Rates screen is not available in Brazil.

  
  

Adding a VAT Code

To add a VAT code, do the following:

1. Click Add in the VAT Code Maintenance window. The next available line is enabled.

2. In the VAT Code and Description fields, enter a relevant VAT code and description.

3. In case you want to make the VAT code part of the NIC, select the Included in NIC check box.

4. Click OK to save your changes, and close the window.

Deleting a VAT Code

1. Select a VAT Code, and click Delete. A confirmation message appears.

2. Click Yes to delete the VAT Code.

3. Click OK to save the changes, and close the window.

Tax Regions

The department level VAT maintenance is not used in Brazil because the retail taxes in Brazil are applied according to the NCM code (item level). A tax code can have more than one rate, based on the NCM code and the state or city where the item is transacted.

Tax Burden Display at POS and Sales NF

In Brazil, new legislation related to the consumer protection code was released determining that the tax burden included in products and services sold to end consumer must be highlighted in the fiscal documents or fiscal tickets in a specific field.

The purpose of this law is to provide transparency to consumers on the amount of taxes included in retail prices.

In that way, the law determines that the total amount of federal, state and municipal taxes levied on the sale of goods or services needs to be stated in the fiscal documents.

Companies must provide the "approximate amount of taxes", per item or service sold in a specific field. Also, the header of the fiscal document should include the total amount of taxes, considering all items and services sold.

These changes impact the NF-e layout, as well as the DANFE report (NFE report).

As the rate cannot be calculated or determined by calculations in the system, it must be uploaded from an external source.

It is necessary to have the average tax rate coming from authorized entities, approved to provide such information. One of the authorized entities that publishes the average tax rate for all types of products is the IBPT - Brazilian Institute of Tax Planning.

IBPT provides, through downloadable file, the rates for the determination of the approximate values of taxes to the consumer, making it possible for businesses issuing fiscal documents or POS fiscal tickets in full compliance with the law, exempting them from any responsibility for the calculation of this tax, since the source is acknowledged in the documents.

The authorized entities such as the IBPT provide the rate information associated to the NCM (Nomenclatura Comum do Mercosul) code.

Note: In case of service items which do not have NCM, the federal service code standard NSB (Brazilian Nomenclature of Service) is used.

The following information is uploaded.

Table 2-1 Average Tax Rates

Columns	'Description
NCM/NBS code	This column displays the NCM code in case of regular products and the NBS code in case of service items.
NCM exTIPI	This column contains the exTIPI exception classification.
NCM/NBS identification	This column contains ’0' for regular items, ’1' or ’2' for service items.
Description	This column contains the NCM or NBS codes description.
AliqNacFederal	This column contains the average tax rate for items with domestic origin. The origin code equals 0, 3, 4 or 5.
AliqImportFederal	This column contains the average tax rate for items with imported origin. The origin code is different from 0, 3, 4 or 5.
AliqEstadual	This column contains the average tax rate for items for state.
AliqMunicipio	This column contains the average tax rate for items for Municipal.
VigenciaIni	This column contains the beginning date.
VigenciaFim	This column contains the end date.
Chave	This column contains the key code generate by IBPT.
Versao	This column contains the version of this available table.
Fonte	This column contains the code of the government organization.
UF	This column contains the code of the federal unit (state) which is valid for calculation of each Location (Store or Warehouse).

Business Flow

To upload average tax rates files from an external source that publishes the tax rates for all types of products, follow the steps below.

1. Open each file using Excel and rename sheet with IBPT.

2. Save the file with the extension .ods.

3. To access the Tax Burden Induct window, follow the steps below.

Navigate: From the RMS Start Menu, select Fiscal Management, then select Fiscal Configuration. In the Contents of Fiscal Configuration, open Tax Burden Induct. The Tax Burden Induct window appears.

Figure 2-2 Tax Burden Induct Window

1. Click Browse to choose the file you want to upload.

2. In the State field, select the state for the tax rates that will be uploaded.

   
   

   Note: The state must be the same as the source file.

   
   

3. Click Submit.

4. Confirm the message to upload the file.

Filtering Processes

You can also view executed processes by using the filter section.

1. You can filter the processes by the following criteria:

   • Process Id - Select a process Id.

   • Start and End Date - Enter or use the calendar to select a start and end date.

2. Then click Filter. The results matching your search criteria are displayed in the Upload Results section.

3. Press Clear/Refresh to reset the filter or press Close to close the window.

Viewing Process Issues

In case problems occur during the upload, you can view the details of an issue by using the following steps.

1. In the Upload Results section select the record.

2. Then click View Issues. The Tax Burden Induct - Issues View window appears. All issues that occurred during the upload are displayed.

   Figure 2-3 Tax Burden Induct - Issues View Window

   
   

3. Click Refresh to reset, or click Close to exit the window.

Posting Average Tax Rates used by POS Systems

POS solutions are required to print the average tax amount in each and every fiscal ticket issued in sales to end consumers. To calculate and print the necessary information, POS receives the average tax rate applicable to each item from RMS.

The POS_MODS_TAX_INFO table has been updated to hold the correct average tax rate information. Additionally the POS download batch has been adjusted to account for the additional information.

The changes in these processes consist in fetching the correct average tax rate from the new average tax rate table, by using the following criteria:

For each item in the POS_MODS_TAX_INFO table, the correspondent average tax rate using the NCM or NBS codification as well as the item origin from RMS fiscal attributes and the location for which the item will update the price and taxes must be found.