I explained here how you maintain tax rates in the system:
And here, how you activate taxes conditions in the tax codes:
Now, let me explain you something regard ICMS tax calculation that you don’t see often in SAP discussion forums.
Some people don’t understand the concept of calculated inside tax to the ICMS. Even if you are Brazilian, not everybody knows or understand that, and I don’t blame them.
1 – TAX RATES: NOMINAL AND REAL
The ICMS VAT is a tax that integrates its own calculation basis (calculated inside tax), i.e. the purchase or sale price of the good or service is already built the value of detached ICMS; thus, their effective tax rate is higher than the nominal rate, note the following table:
ICMS RATE: NOMINAL REAL – (100,00/ICMS Rate(0.96(4), 0,93(7), 0,88(12), 0,82(18))-100) = Readjustment Index to charge Customer on Fiscal Operations (Sale)
- 4% – 4,167%
- 7% – 7,527%
- 12% – 13,636%
- 18% – 21,951%
- 25% – 33,333%
Suppose the company has acquired goods for resale where the total value of NF is R$ 1,000.00. This amount is already included in the detached ICMS mentioned in the NF of R$ 180.00 (18%).
The corresponding accounting would be:
- Vendor 1.000,00
- Stock Goods (R$ 1000.00 – R$ 180.00) 820.00
- ICMS Credit Recoverable 180.00
If the company selling products with 100% profit margin on the cost, the calculation of the sale price would be done as follows:
1º) Sales Amount Calculation
- R$ 820.00 + 100% = R$ 1,640.00, the corresponding value is 82% of the sale as it has not the amount of ICMS due on that amount.
- 82% = 100% – 18%
- Sales Amount R$ 1,640.00 (82%)
2º) Sales Nota Fiscal:
- Sales Nota Fiscal Amount……………R$ 2,000.00
- ICMS Detached (18%) ……………………R$ 360.00
3º) Real Tax Rate Calculation (%) R$ 360.00 – R$ 1,640.00
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