ICMS Calculation (Brazilian Hub SuiteApp)
The Imposto sobre Circulação de Mercadorias e Prestação de Serviços (ICMS) tax applies to the movement of goods, and on telecommunication, electricity, and shipping services in Brazil. The ICMS tax is a state tax, and its parameters are defined and collected by each state. The Brazilian Hub SuiteApp provides custom records for you to set up ICMS calculation in several contexts.
Creating ICMS Parameters
To set up ICMS calculation on your account, you must create a parâmetros ICMS record for each combination of the following:
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Origin and destination state from your transactions
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Mercosur Common Nomenclature (MCN) code associated with the goods or expenses you purchase or sell
To create ICMS parameters:
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Go to BRHub > Fiscal > Parametrização de ICMS > New.
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In the UF Origem field, select the federative unit (UF) in which the company that originated the transaction is located.
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In the UF Destino field, select the federative unit (UF) in which the receiving company is located.
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In the NCM field, select the MCN code associated with the goods that are subject to these parameters.
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(Optional) If the parameter should only apply to a specific item, in the Produto field, select the item the parameter applies to.
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(Optional) If you want to identify the goods origin, in the Origem do Produto field, select the goods’ origin category.
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(Optional) If you are creating parameters for ICMS levied on an expense, in the Despesa field, select the expense category.
ICMS can apply to expenses such as telecommunication, electricity, and shipping services. For shipping services, ICMS applies when you issue the Conhecimento de Transporte Eletrônico (CT-e) e-document for the operation.
For more information about expense categories in Brazil, see Expenses for Brazil (Brazilian Hub SuiteApp).
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Click Save.
After you create a parâmetros ICMS record, you should create the relevant related parameters: