Consumption Taxation in August: What the Higher Courts Have Been Discussing

STJ Rules Out ICMS on Personalized Smart Cards and Confirms ISS Treatment

The First Panel of the Superior Court of Justice (STJ) denied the Special Appeal filed by the São Paulo State Treasury and upheld the application of ISS to the printing and personalization of bank smart cards. The decision was published on August 13, 2026.

The panel concluded that made-to-order, individualized smart cards linked to banking services lack independent economic utility and do not constitute goods capable of legal circulation. It therefore classified them as personalized printed materials inseparable from the services provided by financial institutions and ruled out ICMS.

The decision further held that the exception in item 13.05 of the list attached to Supplementary Law No. 116/2003 does not apply because the cards are not intended for subsequent sale or manufacturing. They cannot be resold, reused, or assigned to third parties and serve exclusively as instruments for accessing the banking services offered to the relevant customers.

This material is for informational purposes only. Our Consumption Tax team is available to provide specific legal advice.