Brazilian Government to Release Updated Industrialized Products Tax Table

Tax Automation Technology for Brazil

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:

Chap 24 - Nicotine patches and nicotine gums (Tobacco)

Chap 62 - Clotches

Chap 30 - Medicines

Chap 68 - Stone, plaster and cement

Chap 34 - Soaps

Chap 84 - 3D Printers (Machines and Instruments)

Chap 38 - Chemical products

Chap 85 - Multimedia screens, electctronic scraps (Machines, Equipments and Electrical materials)

Chap 39 - Plastics

Chap 87 - Vehicles

Chap 44 - Wood

Chap 88 - Aircraft and spacecraft

Chap 55 - Sintetic and Artificial Fibers

Chap 90 - Optical instruments and apparatus

Chap 57 - Rugs and coverings

Chap 94 - Furniture

Chap 58 - Fabrics

 

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.


Please remember that Tax Matters provides information for educational purposes, not specific tax or legal advice. Always consult a qualified tax or legal advisor before taking any action based on this information. The views and opinions expressed in Tax Matters are those of the authors and do not necessarily reflect the official policy, position, or opinion of Vertex Inc.

Blog Author

Industry Influencer Ana Maciel

Ana Maciel

Senior Manager, Tax Research

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Ana Maciel is a senior tax research manager responsible for new tax content that supports the Vertex Indirect Tax O Series solution in Brazil. Based in São Paulo, she has more than 24 years of experience in Brazilian indirect tax and has worked at Vertex for over 11 years. Previously, she worked as a tax advisor to multinational companies in Big 4 accounting firms. Ana holds a B.S. in law and a B.S. in business administration, as well as a post-graduate degree in international trade from Universidade Paulista.

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