Energy | Indirect Taxation – May 2026

Indirect Taxation

Updates on the Consumption Tax Reform

The Federal Revenue Service and the IBS Steering Committee have extended the deadline for submitting suggestions on the IBS and CBS regulations. The new deadline is June 15, 2026, at 6:00 p.m. Proposals must be submitted by representative industry associations through the Receita Atende service.

Also in May, a new version of the technical note addressing the adjustments to the NF-e and NFC-e arising from the Tax Reform was published. According to the document, as from August 3, 2026, completion of the fields relating to IBS and CBS in tax documents will become mandatory for taxpayers subject to the regular regime of these new taxes.

In the same period, a temporary working group was created to assess and propose pricing and remuneration models for the federal tax collection network, as well as the operationalization of the split payment mechanism. The group will include representatives from the Ministry of Finance and the Federal Revenue Service, in addition to the consultative participation of the Office of the Comptroller General.

For more information on Tax Reform and other relevant news on consumption taxation, access our Consumption Taxation team’s newsletter here.

Goiás grants ICMS taxable base reduction on the entry of goods and items destined for construction of electricity transmission lines

By means of a decree published on May 8, 2026, the State of Goiás granted an ICMS taxable base reduction on entry transactions involving goods and items destined for the installation and construction of electricity transmission lines.

The benefit applies at different percentages, depending on the origin of the goods or items. The reduction covers imports of goods without a domestic equivalent, provided that this condition is certified by a competent federal body or a representative industry entity, as well as interstate acquisitions subject to rates of 4%, 7%, or 12%.

The rule establishes that the benefit must be used in lieu of the appropriation of any other credits related to the acquisition of goods or items or to the use of transportation or communication services.

In addition, enjoyment of the benefit is conditioned upon withdrawal from any and all appeals, objections, or lawsuits challenging the levy or collection of the taxes due on the transactions covered by the measure.

The benefit was granted for a fixed term, remaining in force through December 31, 2028.

São Paulo amends rules on the issuance of tax documents in electricity transactions and clarifies their application in the Free Contracting Environment (ACL)

By means of an ordinance published on May 7, 2026, the State of São Paulo amended the rules governing compliance with ICMS obligations in transactions involving the circulation of electricity, particularly with respect to the indication of the issuance date of tax documents. The amendment consists primarily in replacing the reference to the last day of the relevant month with the indication of the actual issuance date of the tax document, subject to the deadline applicable to the month in which the taxable event of the transaction occurred. The change applies to different situations governed by the state rules, including tax documents issued by agents involved in electricity transactions.

In response to a tax ruling request subsequently published, the São Paulo State Finance Secretariat clarified the application of these rules to NF-es issued in electricity transactions within the Free Contracting Environment (Ambiente de Contratação Livre – ACL). According to the tax authorities’ interpretation, NF-es issued in this context must, as from October 1th, 2025, comply with the amendments introduced by the new rules.

The ruling also clarifies that, if the taxpayer issued tax documents in noncompliance with the rule currently in force, or failed to issue the applicable NF-es, regularization must be carried out through a voluntary disclosure filing.

The rule entered into force on the date of its publication and, as a rule, produces effects as from October 1th, 2025.

São Paulo clarifies that transactions involving BESS classified under NCM code 8504.40.40 are subject to the tax substitution regime

In response to a tax ruling published on May 21, 2026, the Finance Secretariat of the State of São Paulo concluded that internal transactions destined to taxpayers in São Paulo involving uninterruptible power supply equipment, or BESS (Battery Energy Storage System), classified under NCM code 8504.40.40, are subject to the ICMS tax substitution regime.

The tax authority reiterated that subjection to the regime presupposes cumulative classification of the good under the description and tax classification provided for in São Paulo legislation. In this case, the tax classification indicated by the taxpayer corresponds to the description of uninterruptible power supply equipment, also known as UPS or no-breaks, set forth in the legislation applicable to tax substitution.

Thus, according to the tax authorities’ understanding, the commercial denomination of the product as an energy storage system does not remove incidence of the tax substitution regime, provided that classification under NCM code 8504.40.40 is correct.

Santa Catarina regulates ICMS tax substitution on electricity used for charging electric vehicles

A decree published on May 14, 2026 regulated, in the State of Santa Catarina, the possibility of assigning to electricity distributors responsibility for collection of the ICMS in electricity supply transactions destined for consumption at electric vehicle charging stations.

The measure derives from ICMS Agreement No. 182/2025, which governs the tax substitution regime applicable to circulation of electricity destined for consumption by electric vehicle charging stations, from production or importation through the final transaction, and allows adoption of a specific tax substitution model, subject to prior registration in the Tax Administration System (SAT).

In practical terms, the option will apply only to establishments operating exclusively as electric vehicle charging stations or, when inserted in other economic segments, that have exclusive metering of the electricity consumed at the stations.

The regulation also excludes stations participating in the Electric Energy Compensation System (SCEE). For purposes of calculation of the ICMS due under tax substitution, the tax base will consist of the value of the distributor’s own transaction plus a Value Added Margin (MVA) of 150%.

The decree produces effects as from its publication.

This material is provided for informational purposes only. Our Energy team closely monitors industry trends and developments and is available to provide additional information on these and other topics.