Definicja Substituiçăo Tributária

Tax substitution in Brazil. The system calculates one form of tax substitution, ICMS. Nonetheless, you will only see the term Substituiçăo Tributária in the system, or its common abbreviation SubTrib.

Substituiçăo Tributária involves a method of tax collection in which the manufacturer of goods submits ICMS to the fiscal authorities for the tax it incurs when it sells its goods or services to a distributor or retailer, as well as the tax it collects from the distributor or reseller on the presumed resale surcharge.

Typical examples in which Substituiçăo Tributária is applied are gasoline and cigarettes. There are few producers, but many retailers.