Is It Possible To Setup ICMS Tax Code For ICMS Desonerado At Brazil Free Trade Zone (Convenio ICMS 134/19)? (Doc ID 2886730.1)

Last updated on JANUARY 23, 2023

Applies to:

Goal

 ICMS—Imposto sobre Circulação de Mercadorias e Serviços—is a state-level sales tax imposed on the physical movement of merchandise. Currently it is not possible to properly process the transactions as follows. 

Context:
Currently the unit price in the Nota Fiscal document is based on the sales net price which is also composed by products price lists and several rules and setups that check and validate the customers' address and regions before issueing a Nota Fiscal document; this is also depending on the country region (there are different tax benefits in terms of rates or tax discounts).
For the Free Trade Zone (Zona Franca region) and Suframa too, the ICMS nº 134/2019 agreement established some changes that promote the ICMS exemption for industrialized products.

Requirement: 
In order to attend the government requirement act (CONVÊNIO ICMS 134/19, from 5-July 2019) it is mandatory to inform some tags in the XML file (Brazil Electronic Invoice).

The software vendor is responsible to issue the XML and cannot derive the correct values looking only at the standard rules and product price list available. The software vendor is responsible to integrate and validate the XML files with Brazil Tax Authority (also know as "Sefaz"). In order to attempt "ICMS Desoneado" tags, from ICMS nº 134/2019, this information is needed:
XML Tags:
- "vProd" - is the good amount by item
- "vICMSDeson" - value of ICMS discount tax
- "motDesICMS" - reason of ICMS tax discount

How to setup an ICMS Tax Code and other Brazilian Localization requirments to calculate correct the requirement for ICMS Desonerado at Brazil Free Trade Zone?

Solution

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