Rapid Implementation to Configure Brazilian Taxes

You can use the rapid implementation spreadsheets to configure the basic tax setup, that is, regime to rate and tax rules for Brazil. However, in certain areas, some additional configuration is required.

These table provides details of the additional steps that need to be performed for some tasks.

Task	Additional Steps	Notes
Tax Regime	Create compounding precedence	On certain transactions, IPI is compounded on ICMS. ICMS is also compounded on ICMS-ST or ICMS (Differential). So, appropriate compounding precedence must be set for each tax regime.
Taxes	Set the default applicability, default taxable basis formula and the default tax calculation formula	Taxes are created with the default applicability. They must be set as not applicable, if rules are configured for applicability. Similarly, standard taxable basis formula and tax calculation formula are used as default values for few taxes (like IPI, ICMS-ST) must be changed.
Tax Rates	Revise the rate type	If IPI tax is to be applied based on quantity instead of percentage, then the rate type attribute configured through rapid implementation requires manual correction.
Taxable Basis Formula	Create compounding and additional data setup	Taxable basis formula for ICMS tax requires compounding of IPI tax. Some taxes like ICMS-ST also require configuration of price thresholds or value additions.
Tax Calculation Formula	Create compounding	Tax calculation formula for taxes like ICMS (differential) and ICMS-ST require compounding on ICMS tax.
Tax Registrations	Mark self-assessment	ICMS (Differential) and ICMS-ST may be required to be calculated as self-assessed. Tax registration records will need correction.
Tax Rules	Update list of values	Few tax rules are based on list of values. All such values must be manually configured.