In a recent decision, the Superior Court of Justice (STJ) recognized the right of a taxpayer to take advantage of ICMS credits arising from the acquisition of intermediate products, even if they are consumed or have been worn out during the production process, simply by proving the need for their use in the company’s core business.
The Court’s broadening of this understanding is close to the position already expressed in relation to PIS and COFINS credits in Special Appeal No. 1.221.170/PR, since it takes into account the criteria of essentiality and relevance of the inputs in the development of the company’s activities.
In the specific case analyzed by the STJ, ICMS credits were allowed for the purchase of intermediate products such as knives, hammers, lubricating oils, grease, sealing elements, valves and filters, which are not necessarily consumed immediately in the production process.
It is worth remembering that state treasuries only usually allow credits when the good is incorporated into the final product or is consumed instantly in the production process, prohibiting the use when there is a gradual wear and tear of the inputs, which limits the taxpayer’s right.
In this way, the recent decision handed down by the Court could bring significant financial benefits to taxpayers.
Our tax team is on hand to help and make it possible for credits to be taken in a safe and comprehensive manner, as happened in this case.
