CEPOM or CPOM: understand how the requirement stands in the cities of Rio de Janeiro and São Paulo

STF established that the obligation of registrations such as CEPOM or CPOM is unconstitutional.

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CEPOM or CPOM: understand how the requirement stands in the cities of Rio de Janeiro and São Paulo


STF established that the obligation of registrations such as CEPOM or CPOM is unconstitutional


The registration required by some city halls for service providers based in other locations has been undergoing changes following a recent decision by the Federal Supreme Court (Supremo Tribunal Federal - STF). As a result, taxpayers have been asking questions about the validity of CEPOM, in Rio, or CPOM, as it is known in São Paulo.

In February 2021, STF declared that it was unconstitutional for municipalities to require registration of providers from other municipalities (RE 1167509 of 02/26/2021). According to the understanding, an obligation for such a purpose could only be instituted by federal law.

From then onwards, the Rio de Janeiro City Hall stopped requiring the registration, resulting in an update in the Nota Carioca platform. The city of São Paulo, on the other hand, in November 2021, has made the registration optional.


What is CEPOM or CPOM?


It is a registration adopted by some municipalities to register service providers (legal entities) located in another city. In Rio, it is called the Registry of Provider Companies from Other Municipalities (Cadastro de Empresas Prestadoras de Outros Municípios - CEPOM). In São Paulo, the equivalent is the Registry of Providers from Other Municipalities (Cadastro de Prestadores de Outros Municípios - CPOM).

Without making this registration, the company is subject to double payment of ISS: in its own city and in the customer's location.


CEPOM/RJ: understand the case in the city of Rio de Janeiro


The capital of Rio de Janeiro is in line with the STF decision and there is no longer ISS withholding by the service user in this modality. Since June, the Nota Carioca system no longer requires such withholding.

In November, Article 35 of Complementary Law No. 235 of November 3, 2021, revoked the provisions of CEPOM in the municipality of Rio de Janeiro.

Therefore, as a rule, service providers must follow the tax rules of the city where they are located and not where the service is provided, taking away the risk of double taxation due to lack of registration, in cases in which it was applicable.


CPOM/SP: understand the case in the city of São Paulo


Law No. 17.719 of November 26, 2021, among other provisions, addressed some changes in CPOM. According to the rule, the CPOM registration by service providers from other cities is optional.

Costumers not required to withhold and pay the tax, who fail to issue the Electronic Service Customer Invoice (NFTS), do it with varying importance or with innacurate data are subject to a fine of 50% over the amount of the tax on the provided service.

If it is proved by the tax authorities that the customer knew that the provider was from outside the city of São Paulo, the fine will be of 100%.


Tax support


Domingues e Pinho Contadores' tax center assists businesses in complying with tax obligations in all government spheres, ensuring adoption of practices in accordance with the law. Talk to our team of experts: dpc@dpc.com.br.

*Updated on 11/30/2021.

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