The Brazilian Tax on Manufactured Products (IPI) is a highly relevant tax in the context of the national industry, as it is levied at various stages of industrialization and allows for the use of tax credits, which directly impacts costs and the sector’s competitiveness.
Among its main characteristics is the principle of non-cumulativity, which allows taxpayers to deduct, from the amount owed, the IPI paid in previous stages of the production chain. However, to ensure the proper use of these credits, it is necessary to precisely observe their legal requirements.
Below, we highlight five fundamental points for a safe and effective calculation of IPI credits.
1. Non-Cumulativity and Conditions for Credit: The non-cumulativity of the IPI is established in art. 153, § 3, II, of the Constitution and regulated, among others, by arts. 46, 47, 54, 225, and 226 of RIPI/2010. In this context, the use of the credit is conditional on the actual incidence of the tax on the acquisition of inputs, their connection to the productive activity, and the highlighted tax amount on the corresponding invoice.
2. Taxed Inputs and Wholesaler Acquisitions: According to art. 226 of RIPI/2010, it is allowed to take credit relating to taxed raw materials, intermediary products, and packaging materials used in production. When purchased from wholesalers, who normally do not calculate IPI, the credit is limited to 50% of the amount that would have been charged in a transaction between manufacturers, as established in art. 227, § 4, of the regulation. The rule aims to correct distortions and benefit the industry’s tax planning.
3. Accounting and Documentation of Credits: The appropriation of credits must occur upon receipt of the inputs, with proper entry in the relevant accounting books and supported by valid tax documentation, as per art. 225 of RIPI/2010. Failure to observe these requirements can result in the disallowance of the credit and penalties from the tax authorities:
4. Legal Restrictions on IPI Credits: Credits are not permitted for inputs acquired under a zero rate, exempt, or non-taxable status, as well as those derived from companies under the Simples Nacional regime (art. 227, caput and § 13). Credits are also not admitted for immediate consumption goods, except for specific cases, such as certain items of fixed assets (arts. 226, §§ 2 and 3, and 227, VIII), and electricity, unless its direct use in the production process is proven, pursuant to Precedent 494 of the Superior Court of Justice (STJ).
5. Accumulated Credit: Offset and Reimbursement: Art. 242 of RIPI/2010 addresses the offsetting and reimbursement of accumulated credits, especially in the case of exports, which are exempt from IPI (art. 153, § 3, III, of the Constitution and art. 34 of Law No. 9,779/1999). The execution of these procedures depends on compliance with the Federal Revenue’s rules, notably those contained in Normative Instruction RFB No. 1,717/2017, which require precise controls on the part of the taxpayer.
Continuous observance of the legislation and the criteria highlighted here – non-cumulativity, correct identification of inputs, proper accounting, attention to legal restrictions, and the treatment of accumulated credits – is fundamental for the efficient management of IPI credits, contributing to the reduction of the tax burden and the fiscal security of the company.
