Taxpayers Face New Difficulties In Offsetting PIS/Cofins Credits

Many taxpayers achieved favorable outcomes in lawsuits seeking to exclude ICMS from the PIS/COFINS tax base, following the Brazilian Supreme Federal Court's (STF) decision in the case widely known as the "Thesis of the Century" (Theme 69 of general repercussion).

As a result, these taxpayers were entitled to recover the overpaid PIS/COFINS amounts for the five years preceding the filing of their individual lawsuits. Many of these cases became unappealable around 2020 and 2021, following the STF's final ruling.

Nearly five years later, some taxpayers are now facing a new challenge concerning the recovery of these tax credits.

This is because the Brazilian Federal Revenue Service (RFB) holds the position that: