ICMS – ST – Tax Substitution | Classist Tool

Tax Substitution | ICMS – ST

The Tax on Circulation of Goods and Services (ICMS) is a tax attributed to the States and the Federal District and, as its name suggests, levies on commercial transactions involving goods and services. In a highly diversified and dynamic economy, it would be impossible to imagine that the government could inspect and collect this tax at each stage of the purchase and sale of goods or services, for which reason the ICMS is collected known as tax substitution.

In brief, it is nothing else than a manner to facilitate the collection through withholding the value to be collected as ICMS levying on the Value Added Margin (MVA): an estimate of the calculation basis of the products prepared by the law of each unit federation. Actually, ICMS collection of all stages of the circulation is directed to the producer or first seller.

Operating through Classist, the commercial management teams have access totally automatized to the tax rules levying on interstate sales governed by agreements among the federation units, allowing a bureaucratic and extremely slow process just with a few clicks. In addition, Classist counts on the tax registration and classification duties of all goods based on Mercosur Common Nomenclature (NCM), providing legal security to the company’s charges.

How does Classist work with ICMS-ST management?

Provides support to:
- Complete Assistance;
- Review the procedures;
- Register new products per the market segment;
- Monitor maintenance and update.