Legislation

ICMS-SP - New rules for reimbursement of tax withheld through tax substitution

As part of the compliance program "Programa Nos Conformes”, the procedures for complementing and reimbursing the withholding tax substitution or prepaid by taxpayer were changed by means of the publication of CAT Ordinance 42/2018, on May-22-2018.

This ordinance establishes the "Determination System of Complement or Refunding to ICMS Withheld by Tax Substitution or Prepayment" for determination of complement or reimbursement to ICMS withheld by tax substitution, or prepaid. The system serves the replaced taxpayers from Periodic Assessment System (Regime Periódico de Apuração - “RPA”) and those opting for the Simple Nacional.

Through the new system, the taxpayer may use the pre-validation application, confirm, and correct the information to be transmitted. Once this phase is completed, the digital file is sent through the Documents’ Electronic Transmission (TED) to the Treasury go through the post-validator. Then, the information will be crossed-over there and the taxpayer receives an electronic code from the Taxpayer’s Electronic Domicile (DEC) proving the filing within 24 hours, and may, therefore, register the compensation amount as credit in its monthly determination.

This ordinance now makes the e-Restitution system regulated, which will still be under development, and will be useful for the ICMS withheld in tax substitution or prepaid by taxpayer management, bringing a current account of the amounts to be reimbursed and reimbursed. Taxpayer shall access through digital certificate, with a possibility to issue electronic proxy.

Check here the CAT Ordinance 42/2018.