STF Modulates The Effects Of A Decision On ICMS

The Brazilian Federal Supreme Court (STF) has concluded the trial of the Motion for Clarification in the Direct Action of Unconstitutionality (ADC) nº 49. On the merits, the Justices had already declared the unconstitutionality of provisions of Complementary Law nº 87/1996 (Kandir Law) that provide the charge of the State VAT (ICMS) in the interstate transfer of goods between establishments of the same taxpayer, excluding such taxation since there would be no change in the ownership of such goods.

Now, in the Motion for Clarification presented by the State of Rio Grande do Norte, the Court has modulated the decision to determine that its effects will only take place as of 2024, except for administrative and judicial proceedings pending conclusion until the date of publication of the minutes of the decision on the merits, of April 29, 2021.