Product tax reclassification: R$ 2.8 million recovered
- Practice
- Tax
- Industry
- Manufacturing · Actual profit regime
- recovered with no litigation
- R$ 2,8 mi
The diagnosis
A manufacturer under the actual profit regime started selling a new product with full PIS/COFINS. A periodic tax review of the item's classification showed a technical alternative: an NCM code carrying a zero PIS/COFINS rate.
The strategy
We reviewed the classification against the legislation, the TIPI table and the NESH notes. To make the new classification safe, we took it to the Federal Revenue through a Formal Consultation. It took about 11 months, with no request for further information, until the tax authority ruled in favor.
The result
R$ 2.8 million in tax credits recovered and used in administrative offsets, with no litigation. The product now produces recurring PIS/COFINS savings that grow with its sales.
What it secured
- A safe tax classification for the product
- Recurring PIS/COFINS savings
- Better product margin
- Tax treatment backed by a Formal Consultation