Understanding Poverty Fund Calculation

The Fund for Combating and Eradicating Poverty (FECOP) was instituted and regulated to provide a basic standard of living for all Brazilians. Previously, a percentage of ICMS amount allocated for the poverty fund was included in the ICMS amount due to the state.

As the poverty fund is not prorated between two states, Amendment 87 necessitates that the ICMS percentage for the poverty fund should be separated from the ICMS Interstate Rate before the ICMS differential calculation. Amendment 87 also stipulates that both these values be shown separately in the NF-e XML.