Brazilian Government to Release Updated Industrialized Products Tax Table

The Table of Tax on Industrialized Products (TIPI) is the table of incidence of the IPI (Tax on Industrialized Products), regulated by the Federal Revenue Service of Brazil.

Generally speaking, the TIPI Table is an extensive list of products with their descriptions and respective IPI rates, organized by codes, known as NCM codes, which follow the structural requirements of the Mercosur Common Nomenclature. The TIPI Table is a very extensive document, and the latest version exceeds 400 pages and is always published in PDF format.

The IPI Table is a file regulated and constantly updated by the Federal Revenue Service to properly accommodate and categorize new products from global manufacturing.

Therefore, as a rule, every five years, a new TIPI Table is published to bring a new listing with all the updates applied after the publication of the previous table, as well as reflecting the adjustments in the classification of goods carried out by the Worldwide Customs Organization in the TEC table (Common External Tariff).

Thus, with the publication of Decree 10,923/2021, as of APRIL 1, 2022, the TIPI previously approved by Decree 8,950/2016, will be replaced by a new Table - with the exclusion of 461 NCMs and the inclusion of 599 new NCMs, distributed throughout its 97 chapters, for example:

It is important to highlight that some of these changes result in significant impacts on the taxation of certain products, as is the case, for example, of “Nicotine Adhesives and Gum.” These products were previously classified in the drug group (chapter 30) Now they have an exclusive NCM in chapter 24, with possible impacts on the taxation of  PIS (Contribution for Social Integration Programs) and COFINS (Contribution Social Security Financing), as well as with regard to ICMS ST (ICMS Tax Substitution).

In addition, some other products that were previously classified generically gain a specific NCM within their respective chapters, such as 3D Printers (in chapter 84), multimedia screens, and electronic scrap (in chapter 85), as well as the drones that currently end up being classified generically among aircrafts (in chapter 88).

Therefore, companies must be alerted to the TIPI Table updates, since although it originally aims to support the taxation by IPI (both in domestic and international operations), the NCM code is also widely used as a way of identifying products by other taxes, whether by PIS, COFINS, ICMS, in the granting of tax benefits, as well as in the issuance of invoices and other tax documents to meet several ancillary obligations.

It is worth mentioning that the internet is full of versions of the TIPI Table, but it is recommended to always use this version provided by the Federal Revenue Service.