Taxes on sales of goods vary according to the product itself and the type of business transaction.
Federal taxes: do you know what you pay for?
- The ICMS is a state tax. Thus, your rate will vary according to the state in which the transaction occurs.
- This characteristic, in fact, is the reason for a series of conflicts.
- Especially when the company selling the product is located in a different state than the one in which the purchase is made.
- As both states want to receive the tax amount, there is a dispute popularly known as tax war.
- Another important point about the ICMS on sales is the possibility of tax substitution.
- That is, when the payment of ICMS is the responsibility of the manufacturer and not the seller.
However, the adoption of the tax substitution regime will depend on the existence of an agreement between the States involved. Make use of the taxfyle.com/sales-tax-calculator there.
The ISS, in turn, is a tax charged for the sale of services, not goods. This is a municipal tax. Therefore, its rate will vary according to the city in which the company is installed. In general, the percentages practiced by the Municipalities vary from 2% to 5%.
The Export Tax is a federal tax, paid directly to the Union. This tax is due when the company sells its products, whether national or nationalized, to other countries. The rate of this tax is usually 30%.
Understand what COFINS is and how this tax is applied and collected
Cofins, despite integrating this relationship, is not a tribute, but a contribution. However, the nomenclature does not change the fact that it needs to be paid, as well as taxes. Its general rate is between 3% and 7.6%, in the non-cumulative mode. However, there is a possibility that the company may be taxed on a cumulative basis. This contribution does not need to be paid by companies that have chosen the Simples Nacional tax regime.
PIS is also a social contribution, the payment of which is also mandatory.
However, it is calculated on the gross revenue of the business, with rates ranging from 0.65% to 1.65%.
Sales tax impacts
The value of sales taxes must be prorated and passed on to the final consumer so that there is no loss for the company. Thus, it is clear that taxation affects the final price of the product. And this generates a series of complaints about the Brazilian tax burden.
Both for companies and for individual consumers
Income Tax Guide for Investors
Where are sales taxes accounted for?
- For this reason, sales taxes, as well as taxes recoverable and payable, must be reported in the Statement of Income for the Year.
- This ancillary obligation computes the calculation of the result for the year, following the accrual accounting principle.
- Thus, the inflows of resources for the period and the costs and losses involving these returns must be reported.
- Among them, sales taxes.
But, if you have any questions about sales taxes leave them in the comments, so that other readers can help you to solve it.