Consumption Taxation: Federal, State, and Municipal Developments in August

Federal

Congress Approves Supplementary Bill Proposing Significant Amendments to the National Tax Code

On August 12, 2026, the Federal Senate concluded the vote on Supplementary Bill (PLP) No. 124/2022, which amends several provisions of the National Tax Code (CTN) and introduces new ones. The text approved by the National Congress addresses limits on penalties, dispute-resolution mechanisms, consensual procedures, and administrative proceedings in tax and customs matters.

The PLP caps penalties tied to the amount of tax assessed or the tax credit affected by a failure to comply with, or delay in, the provision of information at 75% of the relevant amount. The cap rises to 100% in cases of fraud, tax evasion, or collusion and to 150% for repeat offenses.

The text also establishes reductions for penalties imposed through ex officio tax assessments. Depending on the method and timing of payment or installment payment, the reductions range from 20% to 50%. For taxpayers participating in tax compliance programs, they range from 30% to 60%.
The voluntary disclosure regime will now expressly encompass late-payment penalties.

The PLP further provides that a specific law may authorize special tax and customs arbitration. In those proceedings, the arbitral award will be binding and have the same effects as a judicial decision.

For administrative tax proceedings, the text establishes a 20-business-day period for filing an administrative challenge, a taxpayer appeal, or a special appeal, and a five-business-day period for motions for clarification. The Federal Government, the Federal District, the States, and the Municipalities will have two years to align their legislation with the general rules governing administrative tax proceedings.

The Senate-approved text was submitted for presidential approval.

Brazilian Federal Revenue Service Denies Reciprocal Tax Immunity to Public Consortia Organized under Private Law

Through a Tax Ruling published on August 13, 2026, the General Coordination for Taxation (COSIT) of the Brazilian Federal Revenue Service concluded that public consortia organized under private law are not entitled to the reciprocal tax immunity provided for in Article 150, item VI, subitem “a,” of the Federal Constitution.

According to the tax authority, no statutory basis supports extending to such consortia the treatment applicable to state-owned companies and mixed-capital companies that provide public services. The conclusion applies to federal taxes.

The COSIT Tax Ruling distinguished these entities from consortia organized as public-law associations, which have legal personality under public law, form part of the indirect administration of the participating federative entities, and may benefit from the immunity subject to the terms, conditions, and limitations applicable to autonomous government agencies (autarquias).

Brazilian Federal Revenue Service Rules Out IPI and Excludes Pass-Through Amounts from Simples Nacional Revenue in Imports on Behalf of Third Parties

In a COSIT Tax Ruling published on August 14, 2026, the Brazilian Federal Revenue Service concluded that the Excise Tax on Manufactured Products (IPI) does not apply to revenue earned by a company under the Simples Nacional regime from import services performed on behalf of and for the account of a third party. In the tax authority’s view, this arrangement constitutes neither a purchase and sale transaction nor the manufacture of goods, but rather the provision of customs-clearance services to the acquiring party, which is the actual importer.

The tax authority further concluded that the import service provider’s gross revenue excludes amounts charged by third parties participating in the import and paid on behalf of and for the account of the acquiring party, even when the funds transit through the service provider. Such amounts, including warehousing expenses in Brazil and inland transportation costs, do not constitute consideration for the services rendered.

Brazilian Federal Revenue Service Recognizes Exclusion of Freight from the IPI Tax Base in Imports on Behalf of Third Parties

On August 4, 2026, the Brazilian Federal Revenue Service published a COSIT Tax Ruling examining whether freight should be included in the IPI tax base on the outbound sale of goods imported on behalf of and for the account of third parties.

The ruling states that the importer need not include freight in the total value of the outbound transaction from its establishment, which is treated as an industrial establishment for IPI purposes. This position reflects the Brazilian Federal Revenue Service’s obligation to follow the relevant acts of the Office of the Attorney General of the National Treasury (PGFN).

The PGFN recognized Federal Supreme Court (STF) case law extending to disputes over freight and insurance the rationale adopted in Extraordinary Appeal No. 567,935/SC, General Repercussion Topic No. 84. The Brazilian Federal Revenue Service nevertheless clarified that the resulting administrative binding effect does not relieve taxpayers of compliance with ancillary obligations under the IPI rules.

The Tax Ruling applies to outbound transactions by importers acting on behalf of and for the account of third parties, with respect to freight amounts charged or debited to the purchaser or recipient. The request was deemed ineffective insofar as it sought recognition of standing to offset, obtain a refund of, or recover overpaid IPI, because the procedural requirements governing tax rulings were not satisfied.

Brazilian Federal Revenue Service Restricts Accelerated Utilization of PIS and Cofins Credits on Shopping Mall Buildings

In a COSIT Tax Ruling published on August 11, 2026, the Brazilian Federal Revenue Service examined the accelerated utilization of PIS and Cofins credits calculated on depreciation charges for buildings capitalized as fixed assets by a company that operates and manages shopping malls.

The tax authority concluded that the regime established by Article 6 of Law No. 11,488/2007 does not apply to buildings intended for real-estate leasing, because leasing and the provision of services are distinct legal concepts. It further considered the leasing of commercial space to be the predominant activity of shopping malls.

Under the ruling, the benefit is restricted to the specifically identified portion of a building used as the operating base for services provided directly by the legal entity. It may also extend to theater and event areas, provided that the property owner operates them directly.

The Brazilian Federal Revenue Service nevertheless permitted this treatment when depreciation had already commenced. In that circumstance, credits will be calculated on the residual value of the eligible portion and utilized over 24 months, while the remainder of the property remains subject to the general rule for depreciation charges.

MDIC Establishes Basic Production Process for Dietary Supplements Manufactured in the Manaus Free Trade Zone

On August 3, 2026, the Ministry of Development, Industry, Trade and Services (MDIC) issued an Ordinance establishing a Basic Production Process (PPB) for Dietary Supplements manufactured in the Manaus Free Trade Zone (ZFM).

The act sets out the mandatory manufacturing stages, the territorial limits governing their performance, and the conditions for outsourcing the production process.

Under the Ordinance, the PPB comprises the analysis, separation, and weighing of inputs, followed, as applicable, by mixing, homogenization, compression, or encapsulation. These stages must be performed in the ZFM, except for finished-product testing, packaging printing, and final packaging, which may take place elsewhere in Brazil. Outsourcing is permitted, except for the stage expressly excluded from outsourcing.

The Ordinance took effect upon publication.

Federal Government Regulates ProBioQAV and Allows Use of EPZ Tax Incentives for Sustainable Aviation Fuel Production

On August 13, 2026, the Federal Government issued a Decree regulating the National Sustainable Aviation Fuel Program (ProBioQAV) and including incentives for Sustainable Aviation Fuel (SAF) production in Export Processing Zones (ZPEs) among the instruments designed to promote the production, marketing, and use of this fuel in Brazil.

As a result, SAF production may benefit from the regime established by Law No. 11,508/2007, subject to the applicable statutory requirements.

Companies authorized to operate in ZPEs may benefit from the suspension of taxes on imports and domestic acquisitions of machinery, equipment, raw materials, intermediate products, and packaging materials, including Import Duty, IPI, PIS/Cofins, and the Additional Freight Charge for Renewal of the Merchant Marine (AFRMM). The legislation also provides for zero rates of PIS and Cofins on the import or acquisition of services by companies eligible for the regime.

Including SAF production among the instruments of ProBioQAV strengthens the alignment between Brazil’s national sustainable aviation fuel policy and the ZPE regime, which applies to companies satisfying the conditions and requirements of Law No. 11,508/2007.

Government Extends Tax Suspension under Drawback for Exports Affected by U.S. Tariffs

On August 25, 2026, a Provisional Measure (MP) was published authorizing an exceptional one-year extension of tax-suspension periods under the special customs drawback suspension regime for concession acts affected by additional tariffs imposed on Brazilian exports to the United States.

The extension applies to concession acts that the competent authority has already extended, whose tax-suspension periods expire between July 22 and December 31, 2026, and whose closure review remained pending when the measure took effect.

The MP also encompasses concession acts held by intermediary manufacturers when the intermediate product is supplied to an industrial exporter and the export commitment for the final product has demonstrably been affected by the tariffs. The additional period will run from the end of the concession act’s term, taking into account the ordinary extensions permitted by law.

Eligibility for the extension requires a document evidencing a pre-existing commercial intention to sell to the United States. An intermediary manufacturer must also provide a pre-existing agreement or sales invoice issued to the industrial exporter.

The MP took effect upon publication.

Government Regulates Exceptional Extension of Drawback Suspension for Exports to the United States

On August 26, 2026, the Foreign Trade Secretariat (Secex) issued an Ordinance implementing MP No. 1,386/2026, which authorized an exceptional one-year extension of drawback suspension concession acts affected by the additional tariffs on Brazilian exports to the United States.

Under the Ordinance, the company must submit to the Foreign Trade Operations Department (Decex) an agreement or other document dated before August 25, 2026, evidencing a commercial intention to export to the United States. The document may take the form of an offer, request, proposal, or commercial negotiation, must identify the product, potential buyer, and potential exporter, and may be submitted in English without translation.

The request must be filed by official letter through the Electronic Document Attachment module of the Integrated Foreign Trade System (Siscomex), identifying the relevant concession acts and export items and enclosing the required documentation. The Ordinance also governs the evidentiary requirements applicable to intermediary manufacturers and to transactions conducted by export trading companies.

The Ordinance took effect upon publication.

Amapá

Amapá Regulates Procedures for Granting and Monitoring Tax Incentives for the Productive Sector

On August 17, 2026, the Amapá Economic Development Agency (Agência Amapá) and the Amapá State Treasury Department (Sefaz/AP) issued a joint Normative Instruction establishing the administrative procedures for applying for, reviewing, granting, monitoring, and auditing tax incentives for the State’s industrial and agroindustrial sectors.

Applicants must submit a Letter of Intent to Agência Amapá, together with an Economic and Financial Project and the required supporting documents, including organizational documents, tax clearance certificates, balance sheets and income statements for the two preceding fiscal years, and a list of intrastate and interstate outbound transactions from the preceding 12 months.

The procedure begins with an initial review by Agência Amapá, followed by referral to Sefaz/AP to assess compliance with tax law and estimate the application’s budgetary and financial impact. The matter is then submitted to the Industrial Development Council (CONDI) for a final decision. Upon approval, Sefaz/AP will, where applicable, grant the corresponding special regime through a reasoned tax opinion and a specific declaratory act.

The Normative Instruction also governs the monitoring of incentives and the filing of periodic reports by beneficiary companies. Noncompliance with the applicable conditions may result in the loss, suspension, or revocation of the incentive and, where applicable, the assessment of the tax due.

The rule took effect upon publication and requires pending proceedings to follow the new procedure from their current stage.

Espírito Santo

Espírito Santo Regulates NF-e Issuance in Specific Transactions

A Decree published on August 12, 2026 amended the Espírito Santo ICMS Regulations (RICMS/ES) to govern the issuance of Electronic Invoices (NF-e) in specific transactions, reflecting the changes introduced by SINIEF Adjustments Nos. 49/2025 and 13/2024.

The rule addresses NF-e issuance for sales for future delivery involving full or partial advance payment, inventory losses, reductions in amounts or quantities, and returns resulting from delivery refusal or inability to locate the recipient. It also establishes specific purposes and categories of Debit Notes and Credit Notes for these transactions.

For sales for future delivery involving advance payment, an outbound NF-e must be issued with the purpose “Debit Note,” type “Advance Payment,” transaction description “Sale for Future Delivery – Advance Payment,” Tax Code for Operations and Services (CFOP) 5.922 or 6.922, and no separate statement of ICMS. A sales NF-e must still be issued when the goods are dispatched, with ICMS separately stated where applicable and a reference to the access key of the advance-payment NF-e.
The Decree further regulates NF-e issuance for inventory losses, reductions in amounts or quantities, and returns arising from delivery refusal or inability to locate the recipient, as well as the events to be recorded by the recipient and the party responsible for transportation.

The rule took effect upon publication. The provisions governing these transactions apply from June 1, 2026, while those concerning sales for future delivery and NF-e correction procedures apply from August 3, 2026.

Mato Grosso do Sul

Mato Grosso do Sul Introduces Electronic Gas Invoice for Piped Gas Transactions

A Decree published on August 24, 2026 introduced the Electronic Gas Invoice (NFGas), model 76, and the corresponding Auxiliary Document for the Electronic Gas Invoice (DANFGas) in Mato Grosso do Sul, incorporating into the State’s ICMS Regulations (RICMS/MS) the rules established by SINIEF Adjustments Nos. 38/2025, 16/2026, and 22/2026.

NFGas will document transactions involving piped gas distributed through urban networks. It must be issued and stored electronically, and its legal validity will be secured by the issuer’s digital signature and authorization for use.

Mandatory use of NFGas begins on November 3, 2026 for taxpayers registered ex officio, or on the date of voluntary registration, as applicable. Taxpayers may continue to use NF-e, model 55, in place of NFGas until July 4, 2027.

The Decree also sets out rules on issuance, authorization for use, digital-file retention, availability of DANFGas, contingency issuance, cancellation, and replacement of an NFGas issued with errors.

The rule took effect upon publication.

Minas Gerais

Minas Gerais Preserves ICMS Incentives Conditional on Federal Tax Relief

On August 15, 2026, the State of Minas Gerais issued a Decree regulating the waiver of conditions concerning the exemption from, or reduction of, the federal tax burden associated with ICMS tax incentives, pursuant to ICMS Agreement No. 28/2026.

Under the rule, compliance with those conditions is waived when they cannot be satisfied as a result of Article 4 of Federal Supplementary Law No. 224/2025.

The waiver applies to conditions established in tax legislation or special regimes granting ICMS tax incentives. The Decree does not authorize refunds or offsets of amounts already paid.

The rule took effect upon publication and applies from January 1 through December 31, 2026.

Pará

Pará Allows Installment Payments of ICMS Debts Withheld under the Tax Substitution Regime

On August 7, 2026, the State of Pará issued a Decree allowing ICMS liabilities withheld by the responsible taxpayer under the tax substitution regime to be paid in installments. The amendment repealed the prohibition on installment payment of such liabilities before their enrollment as overdue tax debt.

Responsible taxpayers may therefore pay these liabilities in installments before they are enrolled as overdue tax debt, subject to the remaining conditions imposed by state law on installment programs. The measure applies from August 7, 2026.

Pará Simplifies ICMS Procedures for Incentivized Imports and Interstate Acquisitions

On August 19, 2026, the State of Pará issued a Normative Instruction streamlining the procedures for imports of goods or assets from abroad covered by an ICMS exemption or deferral and for interstate acquisitions of fixed assets by industrial establishments benefiting from the State’s incentive policy.

For imports, customs release will occur immediately upon presentation of the Guide for the Release of Foreign Goods without Proof of ICMS Payment (GLME). The document must identify the resolution granting the incentive, refer to the Normative Instruction, and indicate the corresponding import declaration or equivalent document.

For interstate acquisitions, the tax document must be recorded with the legal basis for the incentive and the number of the resolution granting it when the differential between the internal and interstate rates is covered by the relevant grant act.

The measure took effect upon publication.

Piauí

Piauí Regulates Payment of State Taxes by Credit Card

On August 24, 2026, the State of Piauí issued an Ordinance governing payment of state taxes by credit card. Use of this method is optional, but payment to the public treasury must be made in full and in a single transaction.

The act also establishes the accreditation requirements and supporting documentation for collection agents responsible for processing payments.

The measure took effect on August 24, 2026.

Rio de Janeiro Addresses ICMS Treatment of Non-Metered Communication Services

The Tax Division of the Rio de Janeiro State Treasury Department (Sefaz/RJ) issued a Tax Ruling addressing the taxation of interstate non-metered communication services and the utilization of ICMS credits.

Sefaz/RJ concluded that, for interstate non-metered communication services priced for defined periods, the tax must be divided equally between the States of the service provider and the recipient. It further stated that the recipient may fully utilize the ICMS credit separately stated on the Electronic Communication Services Invoice (NFCom), subject to statutory restrictions on credit utilization.

Regarding calculation, the ruling clarified that the tax due to each State must be computed on 50% of the price charged to the recipient. Each portion must be treated as an intrastate service, applying the tax rate and poverty-alleviation fund percentage in force in the relevant State.

The tax authority further concluded that a subsequent interstate provision of a non-metered communication service of the same nature requires reversal of part of the credits previously utilized.

Under this interpretation, the reversal must correspond to the 50% portion of the new service for which tax is due to the destination State.

Rio Grande do Norte

Rio Grande do Norte Regulates Refund of Unduly Paid ICMS

On August 7, 2026, the State of Rio Grande do Norte issued an Ordinance governing the refund of ICMS amounts paid unduly.

Refunds will preferably be made by offset, either through a credit entry in the tax books or by direct offset against ICMS liabilities recorded in the State Treasury Department’s system. Cash refunds will be permitted only when offset is unavailable.

Taxpayers under the regular ICMS assessment regime may record, directly in their tax books and without a prior refund request, credits for unduly paid amounts below BRL 10,000. In all other cases, an application must be filed through the Virtual Tax Unit (UVT), together with the required documentation.

When the taxpayer has an installment agreement in effect, any cash refund will be limited to the balance remaining after offset against outstanding installments under agreements relating to the same tax covered by the refund.

The new rules apply from August 7, 2026.

Rio Grande do Sul

Rio Grande do Sul Expands Use of Simplified CT-e in Transportation Services

On August 20, 2026, the State of Rio Grande do Sul issued a Decree expanding the circumstances in which a simplified Electronic Bill of Lading (CT-e) may be issued. From September 1, 2026, eligible transportation services must end within the same State, replacing the previous restriction to services ending within the same municipality.

The amendment therefore permits a simplified CT-e to cover transportation services ending in different municipalities, provided that they are located in the same State and the other statutory requirements are satisfied.

São Paulo

São Paulo Addresses Reversal of ICMS Incorrectly Stated on NFCom

In a Tax Ruling published on August 10, 2016, the São Paulo State Treasury and Planning Department (Sefaz/SP) examined the reversal of ICMS incorrectly stated on an Electronic Communication Services Invoice (NFCom), model 62.

According to the consultative division, reversal must comply with SRE Ordinance No. 31/2026 and may be effected either by issuing a replacement NFCom with the correct amounts or by recovering the tax in the document used to reimburse the recipient. An NFCom issued for adjustment purposes cannot be used for this purpose.

Sefaz/SP stated that duplicate issuance and incorrect identification of the recipient do not qualify for the reversal procedures examined. When the document is issued after the service period has ended, reversal may be processed as a service discontinuation if a charge for part of the period remains outstanding.

When no taxable event occurred throughout the covered period, the taxpayer may, according to Sefaz/SP, file a voluntary disclosure requesting late cancellation and seek a refund through the Electronic Petitioning System (SIPET).

São Paulo Clarifies NF-e Validity Period and Completion of Departure Date

Sefaz/SP issued a Tax Ruling examining the validity period of NF-e and completion of the departure-date field in transactions subject to ICMS.

The ruling states that São Paulo legislation does not prescribe a validity period for an issued NF-e. The departure date must be stated when known at the time of issuance.

When that information cannot yet be determined, the corresponding field may remain blank without preventing transmission or authorization for use of the NF-e. According to the consultative division, movement of the goods 30 days after issuance does not, by itself, invalidate the document under São Paulo law.

Sefaz/SP nevertheless emphasized that, in interstate transactions, acceptance of this procedure remains subject to the destination State’s tax authority, in accordance with the principle of territoriality.

Sefaz/SP Requires Carriers to Obtain DC-e

In a Tax Ruling published on August 14, 2026, Sefaz/SP concluded that a carrier must require an Electronic Content Declaration (DC-e) for transportation services contracted by individuals or legal entities that are not ICMS taxpayers when no tax document is otherwise required.

The ruling concerned the transportation of biological samples for clinical research, shipped by research centers without State Tax Registration and with no commercial purpose. Sefaz/SP concluded that the shipper’s lack of technical capability does not eliminate the requirement to issue the DC-e before transportation begins.

Sefaz/SP stated that the DC-e may be issued through electronic systems provided by tax authorities, carriers, e-commerce companies, marketplaces, and the Brazilian Postal Service (ECT). Although Sefaz/SP does not offer its own issuer, its website provides access to systems maintained by other entities.

Sergipe

Sergipe Requires Subcontracted Carriers to Issue Transportation Documents

On August 12, 2026, the State of Sergipe issued a Decree repealing the exemption that had allowed subcontracted carriers not to issue a Transportation Document.

Consequently, the subcontracted carrier must now issue the document, without affecting coverage of the service by the Transportation Document issued by the contracting carrier. If the subcontractor issues the document for billing purposes, ICMS may not be separately stated.

The amendment applies from August 12, 2026.

Sergipe Removes Tax Substitution Regime for Pet Food Transactions with São Paulo

On August 12, 2026, the State of Sergipe issued a Decree removing interstate transactions involving ?pet? food from the ICMS tax substitution regime when the shippers are located in São Paulo and the recipients are taxpayers in Sergipe.

The amendment applies from August 1, 2026.

Sergipe Updates Special Regimes for Pharmaceutical and Personal Care Wholesalers

On August 24, 2026, the State of Sergipe issued Decrees revising procedures under special ICMS regimes applicable to wholesale taxpayers. In the pharmaceutical, drug, and related-products sector, taxpayers must now submit a monthly digital transaction statement in spreadsheet format by the last business day of the month following the relevant reporting period.

The Decrees also introduced two model Exclusion Notices to formalize withdrawal from the respective special regimes, one for pharmaceutical wholesalers and another for intrastate transactions involving personal care and perfumery products manufactured in Sergipe.

The amendments took effect on August 24, 2026.

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