(11) 3075.2881 (51) 3041.1681 | 3072.2020

Creditor balance of Accumulated ICMS

“The benefit gained from a non-incident output tax may result in a cash flow issue, if the company is not able to reclaim and retrieve paid input taxes through its usual activities”.
Ivo Ricardo Lozekam

ICMS is due by a company when it buys goods or raw materials and the ICMS tax is already withheld on the supplier’s costs. However, as supported by law, the output do not imply in any due taxes, as the benefit grants.

Well, if there is a non-incidence benefit at the output, why is the tax owing for the same product’s input? That means it’s actually a sole “half benefit”, or in our opinion, the granted benefit that waives the tax at the output may easily become a cash flow issue, if the company is not able to reclaim and retrieve paid input taxes through its usual activities.

Usually, these are the situations that lead to an accrued ICMS credit balance:

In all cases where express restrictions from ICMS rules may apply, in consonance with the 1988 Federal Constitution, compensation rights are guaranteed, considering taxes owing to each operation in which products or services related to transport or communications are traded. That disregarding the nature of the previous operation indeed.

Our firm specializes in recovering, managing and liaise with those credits, as well as provide assistance to turn them into new resources to improve a company’s cash flow, which mostly happens in our main target areas with a previous approval from the respective authorities.

São Paulo
Av. Paulista, 1765 - Conj. 72
Bela Vista - São Paulo - SP
CEP 01311-200 Phone: +55 (11) 3075.2881

Porto Alegre
R. Mostardeiro, 366 - Conj. 501
Moinhos de Vento - Porto Alegre - RS
CEP 90430-000 Phone: +55 (51) 3041.1681 | 3072.2020