Substituição Tributária on Freight 

For freight services which are provided by transport companies, in certain business cases the ICMS amount is not calculated and paid by the transport company, but by the company which pays for the freight service.

That means the 'Conhecimento' does not contain the ICMS amount. In such a case the ICMS amount must be calculated by the receiving company. This tax is then called 'Substituição Tributária on freight'.

The delivered tax codes are IF and CF.

General Customizing

Two tax types have been introduced:

These tax types are only relevant for the calculation of taxes on freight values.

SD tax codes

The SD tax codes maintenance contains two fields to activate the calculation of

Definition of the tax calculation base value

In order to calculate ICMS on freight and/or ICMS Sub.Trib. on freight in SD, it is necessary to define the base value for the calculation. The freight conditions which build the base value have to be entered in the Brazil specific SD customizing of ‘Special pricing conditions’. Conditions which are part of the calculation base have to be marked (field ‘S.T.fr.).

The system does not check if such a condition is statistical or not. The control for the freight tax calculation base is not related to definition of freight conditions in the ‘NF value’ field.

FI tax codes

If the calculation of the new taxes (ICMS on freight, ICMS Sub.Trib. on freight) is necessary for a specific business process, a new FI tax code has to be created (copied from an existing code) and the calculation of the respective tax types has to be switched on.

The activation of calculation for the new taxes (ICMS on freight, ICMS Sub.Trib. on freight) in MM is done by defining a tax percentage rate of 100% for condition types IFR1 and/or IFS1 in addition to the other percentage rates which activate the tax calculation as it was available up to 3.0F/B.

Definition of the tax calculation base value

On order to calculate ICMS on freight and/or ICMS Sub.Trib. on freight in MM it is necessary to define the base value for the calculation. The freight conditions which build the base value have to be entered in the Brazil specific MM invoice verification customizing of ‘Value transfer to Nota Fiscal’. Conditions which are part of the calculation base have to be marked (field ‘S.T.fr.).

The system does not check if such a condition is statistical or not. The control for the freight tax calculation base is not related to the definition of special conditions in the ‘NF value’ field.