1. Localizations for Brazil Implementation Guide
  2. Understanding Tax Substitution Code (CEST)

Understanding Tax Substitution Code (CEST)

The CEST values help in the standardization and identification of goods and assets that may be subject to the tax substitution regime. The CEST value should be shown in the Nota Fiscal regardless of whether the operation, goods, or property is subject to the tax substitution rule.

The agreement between the states of the Federative Republic of Brazil currently comprises of 28 segments of goods and commodities.

The CEST values are provided by the tax authority and are composed of seven digits. For instance, in the CEST value 01.001.00:

  • the first and second digits (01) correspond to the commodity or good segment.

  • the third, fourth, and fifth digits (001) correspond to the item of a commodity or good segment.

  • the sixth and seventh digits (00) correspond to the item specification.

Note: You can refer to the government portal https://www.confaz.fazenda.gov.br/legislacao/convenios/2015/CV092_15 for the updated list of CEST codes and the related NCM codes.