SAP Document and Reporting Compliance: Exclusion of IPI and ICMS from NF-e Documents

Hi everyone,

In this blog post you’ll find a description of how to exclude IPI and ICMS amounts from the PIS and COFINS Base Amount in NF-e documents. This allows you to fulfill the legal requirements set by the Brazilian tax authority.

How can I exclude IPI or ICMS amounts from the PIS/COFINS tax base value?

You can exclude IPI or ICMS amounts by implementing the BAdI for Brazil Tax Extensions (BADI_J1B_EXTEND_TAXES).

In which scenarios can I exclude IPI or ICMS amounts?

You can exclude the IPI or ICMS from NF-e documents in supported scenarios of the SAP Document and Reporting Compliance, inbound invoicing option for Brazil and the SAP Electronic Invoicing for Brazil (SAP Nota Fiscal Eletrônica) according to the legal requirements set by your fiscal department.

What happens to the PIS/COFINS tax base value when I exclude IPI or ICMS amounts?

When you exclude these amounts from NF-e documents, the PIS/COFINS tax base value is reduced by the original value of the IPI or ICMS amounts.

Where can I find more information on the exclusion of IPI or ICMS amounts from NF-e documents?

For further details on excluding IPI amounts, check the SAP Note 3335023.

For further details on excluding ICMS amounts, check the SAP Note 3231956.

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Thank you and until next time,

Juliana