The government of Minas Gerais changed the taxation system of the cargo transport sector. The novelty is contained in Decree No. 46.491, published in the Friday edition of the Official State Gazette.
As of October 1st, the seller or sender of goods will remain responsible for paying ICMS only if the carrier is self-employed or registered as a taxpayer in another state. In other cases, the carrier itself will have to collect the state tax.
The change is significant because it reduces a series of obligations for all companies that use the service in Minas. “Today, they have to calculate the tax, issue an invoice to collect the ICMS and are penalized if they don't do it. With the change, there will be one less ancillary obligation”, says consultancy Maria das Graças Lage de Oliveira, from Lex Legis Consultoria Tributária.
The ICMS rate for the cargo transport service in interstate operations is 7% or 12%.
Until the end of the month, the sender of the goods (service taker) is responsible for paying the ICMS due to the tax substitution system. Through this system, adopted since 2006, the tax is anticipated by a company in the production chain.
The new decree also establishes exemption from ICMS for interstate provision of road freight transport services carried out through subcontracting in the State of Minas Gerais. The benefit also goes into effect on October 1st.
Source: Valor Econômico
By: Laura Ignacio