Brazil’s road freight transport is the main logistical system in the country, with 1,751,858 kilometers of roads and highways (world’s 4th largest) in which about 60% of all cargo moved within the country passes through..
The recoverable ICMS on this activity is that being paid for acquiring immobilized assets, clearly including the purchase of new trucks, as well as their fuels and lubricants supply. By the way, for purchases of tires and autoparts ICMS refunds are not allowed, in most states of the country.
Note that about 12% of ICMS taxes paid over acquisitions for a fleet can be recovered and turned into financial availabilities for freight companies’ cash flow, over a period of 48 months. Similarly, about 12% of all diesel consumed could be “transformed” into ICMS refundable tax credit, and then into cash flow.
International truck transport is any road freight which carries goods to export markets. Usually, hired transporters make these routes in stages. From the products origin to the borders with the destination country, warehouses or deposits, carried by the same truck.
From that point, the goods are then transferred to another vehicle or ships, in order to be transported to the destination, in another country. In those cases, ICMS taxes are not to be paid, once the shipment is actually just one, although it’s being executed in stages.
In those cases in particular, even though goods are not being necessarily moved elsewhere, the freight is anyway taken as international, so the tax is not charged at all. However, ICMS credits can be still generated from the amount paid in acquiring assets or fuels, using the company’s revenues as base value.
Many companies are not aware of that, and some of them, exclusively dealing with foreign trade and transport and being free ICMS charges in their operations, forget to reclaim ICMS credits they are eligible to receive back, considering ICMS rules in all states determine:“Refundable tax credits from services and goods (including transport) which are object of export operations or processes are not be reversed”.
Legislação Aplicável RICMS RS
R. Mostardeiro, 366 - Conj. 501
Moinhos de Vento - Porto Alegre - RS
CEP 90430-000 Phone: +55 (51) 3041.1681 | 3072.2020