CALCULATING OF PAUTAS FISCAL TAX
(Doc ID 2498155.1)
Last updated on FEBRUARY 25, 2019
Applies to:Oracle Financials for the Americas - Version 22.214.171.124 to 12.2.8 [Release 11.5 to 12.2]
Information in this document applies to any platform.
In Brazil, Quantity Base Tax is known as Pauta Fiscal.
It is a tax regime applied for several items types. In this regime, the tax amount or tax basis amount is defined by the Tax Authority.
Impacted taxes are:
- IPI - Tax on Industrialized Products
- ICMS - Tax on the Circulation of Merchandise and Interstate and Inter Municipal Transportation Services and Communications
- ICMS-ST (Tax Substitution) - In short, the tax substitution system involves one company taking on the responsibility for calculating and paying over the ICMS on behalf of the entire supply chain, based on an estimated final price for the product
- PIS - Contribution to the Social Integration Program
- COFINS - Contribution for Social security Financing
Currently the items that are under Pauta Fiscal are:
- Cereals and grains
- Products used in the construction, like cement, tile, etc
- Mineral substances, like sand, argil, etc
- Live animals
- Freight services
- Scrap (waste), and others.
The Pauta Fiscal is a known gap in the Brazil localization. The consulting companies have reusable consulting assets to attend this requirement.
As an example, this is the structure of a solution created by a consulting partner:
- Creation of an Auxiliary Screen TAX PER PAUTA to register all the information necessary to calculate the Pauta Taxes
- Change in the Package Core (JL_ZZ_TAX) to identify and calculate the Pauta Taxes values
- Creation of a routine XXX_CALCULATE_PAUTA_P for Pauta Taxes calculation
- Use of ATTRIBUTE10 from table AR_VAT_TAX_ALL, in the taxes and rates screen to inform whether the tax is part to the Pauta Fiscal regime. For this you will need to configure the descriptive flexfield VAT Rate Information
- Use of ATTRIBUTE11 from table AR_VAT_TAX_ALL, in the taxes and rates screen to inform whether the IPI will compose the tax basis for ICMS-ST or standard ICMS. For this you will need to configure the descriptive flexfield VAT Rate Information
- Creation of the XXX_AR_IMP_PAUTAS_ALL table to store all the information registered in the Auxiliary Screen.
The company manufactures and sells products that have state fiscal rules. One
of these rules is the Fiscal Guideline. This rule is about a minimum fixed
value for the collection of the tax, independent of the value of the tax.
This fiscal guideline is applied by item and differs from State for State.
For example: The company sells rice and transfers rice to other units. The
state Government publishes in its site
@ (www.sefaz.rs.gov.br/SEF_ROOT/SEF/SEF-Pautas-Geral.htm) the value of the
Fiscal Guideline for each item, in the case of the rice the Fiscal Guideline
for the pack is R$ 40,00. This means that, if the company transfers the rice
to the unit in Rio Grande do Sul to São Paulo and the price of the pack is R$
30,00, the tax to be calculated in the invoice of sale will be on R$ 40,00.
In the Oracle customer configured the Codes and Taxes of Taxes but the system
is interpreting the value of R$ 40,00 as if it was a tax.
Development stated on the tax BB that the way customer needs to set up for
the case described is to define an exception by item for that item. If the
selling price is 10 and the government's defined value is 40, you should
define the base rate as + 3- i.e., (40 - 10) / 10 = 3. What will happen is
that the price + 3 * price will be the taxable basis. This kind of case is
also documented in the implementation manual for Brazil.
Please note that if the price charged changes, the base rate modifier needs
to change accordingly to meet the minimum taxable basis per single item."
Customer responded the solution from the developer won't work properly:
imagine that in one load I deliver two orders with the same item:
In one order the customer bought the item for R$10,00 in another the customer
bought the same item for R$ 10,50. In both of them the tax is R$0,12. In the
example proposed by the developer, the bases would be changed to both cases;
it would bring an illegal calculation. How is Oracle addressing this issue?
This Fiscal issue describes that are special tax conditions for some group of goods, which is determined by each state government level. This legislation states that some products are subject of special minimum
taxation, in order to ensure the properly tax collection process around the Nation. This is the main reason why some states have defined this group (list of specific products) in order to make easy the taxation
In this way, it is recommended to deep study "Fiscal Classification" feature in Latin Tax Engine, that could give us support on how differentiate these products like conditions. Based on it, there are some aspects
described on the requirements phase for Latin Tax Engine (Nov, 2000) for Import Tax, which is not clear so far if is applicable for the current scenario. What is fact for Import tax, is the possibility to create
exceptions for ICMS and by this point, classify them how to work based on mininum amount of taxable item.
Below you can see an extract of this file:
*** Item 126.96.36.199 - Fixed tax amount ***
There are specific product fiscal classifications have a fixed Import tax amount. If these specific product fiscal classifications are applicable, this rule for determining the basis of taxation overrides all
other basis of taxation rules. The fixed amount can apply to a single unit of measure or a fixed specified quantity.
*** end of item 188.8.131.52 ***
Additionally you can see:
*** Item 184.108.40.206 Exceptions to the taxable base general rule
2. The government has defined a minimum taxable base that must be used for some specific product fiscal classifications. In these cases, the standard taxable base should be determined and then compared to the
minimum taxable base amount. If the determined taxable base is less than the minimum taxable base, the minimum taxable base should be used.
*** end of item 220.127.116.11
Based on these two items, it is higly recommended to expose this scenario for the respective PM of this product, in order to identify if these requirements:
1 - are applicable or not for this scenario and
2 - in case of YES - if it was classified like out of scope, must have or add value.
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