In order to recompose the revenue of the municipalities corresponding to the collection with the ISS, there is a proposal that an incidence of the IBS be created only on sales to final consumers. That is, in intermediary sales to taxpayers, the applicable rate would be that corresponding to the federal and state portion of the tax and in sales to final consumers, this rate would be increased by a municipal portion. In non-face-to-face inter-municipal sales (internet sales, for example) the rate of the destination municipality would be applied.
The reasons
There are two reasons why, in the case of municipalities, the impact of IBS is adopted only on sales to final consumers, and not on all tax transactions.
The IBS revenue levied on all transactions is affected by the taxpayers’ inventory variations, which is not relevant for a state, but can lead to abrupt revenue fluctuations in the case of a small municipality where there is a large production unit.
- The control of inter-municipal transactions between taxpayers would generate greater operational complexity.
- As in the State, Municipalities are also free to set their rate above or below the reference rate.
- The transition period in the municipal case would be 50 years, and during the first 20 years there would be a compensation equivalent to the full amount of gains / losses adjusted for inflation, an amount that would be progressively reduced over the next 30 years.
For The Companies
Like companies opting for other tax regimes, the companies will also be required to collect the IBS. However, there is a possibility that companies opting for companies collect the IBS in a segregated manner, if they so wish. The idea is that companies opting for company can continue in this system for the collection of other taxes and opt for the IBS non-cumulative regime if it is economically more favorable. The sales tax calculator zip code offers you great help in the calculation.
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