Brazil: Substituição Tributária 2025: Guia Completo de ICMS-ST Por Estado

Tax Substitution (ICMS-ST) is a regime where one taxpayer in the supply chain collects the ICMS for all others. Understand how it works, MVA, adjusted MVA, PMPF, products subject to it, and how to calculate it correctly in 2025.

What is Tax Substitution

Tax Substitution (ST) is an ICMS collection regime where the responsibility for tax collection is assigned to a single taxpayer in the chain (usually the manufacturer or importer).

Legal Basis:

• Federal Constitution/88 – Art. 150, §7º
• Complementary Law 87/1996 (Kandir Law)
• ICMS Agreement 142/2018 (main)

Types of Tax Substitution

1. Antecedent ST (Backward)

The purchaser collects the tax due on previous transactions.

Example: A rural producer sells to an industry without an invoice. The industry collects the ICMS due by the producer.

2. Concurrent ST

The tax is collected at the time of the transaction.

Example: Transportation services.

3. Subsequent ST (Forward) – Most Common

The substitute (manufacturer/importer) collects the ICMS in advance for the entire chain up to the final consumer.

Example: A beverage industry collects ICMS from the distributor, wholesaler, and retailer.

ICMS-ST Calculation Base

Basic Formula

ST Base = (Transaction Value + IPI + Freight + Insurance + Other Expenses) × (1 + MVA)

MVA – Added Value Margin

Presumed aggregation percentage defined by each state.

Examples of MVA by product:

Adjusted MVA (Interstate Operations)

When the operation is interstate, the MVA must be adjusted to compensate for the difference in rates.

Adjusted MVA Formula

Adjusted MVA = [(1 + Original MVA-ST) × (1 – Inter Rate) / (1 – Intra Rate)] – 1

Where:

• Original MVA-ST = MVA defined by the destination state
• Inter Rate = Interstate rate (4%, 7%, or 12%)
• Intra Rate = Internal rate of the destination state

Practical Example of Adjusted MVA

Scenario: SP → SC

• Original MVA SC: 40%
• Interstate rate: 12%
• Internal rate SC: 17%

Calculation:

Adjusted MVA = [(1 + 0.40) × (1 – 0.12) / (1 – 0.17)] – 1

Adjusted MVA = [1.40 × 0.88 / 0.83] – 1

Adjusted MVA = [1.2337 / 0.83] – 1

Adjusted MVA = 1.4865 – 1 = 48.65%

PMPF – Weighted Average Price to Final Consumer

For fuels, the calculation base does not use MVA, but rather the PMPF (or fiscal guideline).

How PMPF Works

• States define the average sale price to the consumer
• Calculation base = PMPF (actual purchase price does not matter)
• Updated by COTEPE/ICMS acts

Example:

• PMPF gasoline: R$ 6.00/liter
• Rate: 25%
• ICMS-ST = R$ 6.00 × 25% = R$ 1.50/liter

Products with PMPF:

• Gasoline
• Diesel
• Ethanol
• LPG (cooking gas)
• Cigarettes (in some states)

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Practical ICMS-ST Calculations

Scenario 1: Internal Operation (Same State)

Data:

• Invoice Value: R$ 10,000
• IPI: R$ 1,000
• Freight: R$ 500
• MVA: 40%
• Internal rate: 18%

Step 1: Own calculation base

Own BC = R$ 10,000 + R$ 1,000 + R$ 500 = R$ 11,500

Step 2: Own ICMS

Own ICMS = R$ 11,500 × 18% = R$ 2,070

Step 3: ST calculation base

BC-ST = R$ 11,500 × (1 + 0.40) = R$ 16,100

Step 4: ICMS-ST

Total ICMS = R$ 16,100 × 18% = R$ 2,898

ICMS-ST = R$ 2,898 – R$ 2,070 = R$ 828

Scenario 2: Interstate Operation with Adjusted MVA

Data:

• Origin: SP → Destination: MG
• Invoice Value: R$ 20,000
• Original MVA MG: 50%
• Interstate rate: 12%
• Internal rate MG: 18%

Step 1: Calculate adjusted MVA

Adjusted MVA = [(1.50) × (0.88) / (0.82)] – 1 = 60.98%

Step 2: Own ICMS

Own ICMS = R$ 20,000 × 12% = R$ 2,400

Step 3: ST Base

BC-ST = R$ 20,000 × 1.6098 = R$ 32,196

Step 4: ICMS-ST

Total ICMS = R$ 32,196 × 18% = R$ 5,795

ICMS-ST = R$ 5,795 – R$ 2,400 = R$ 3,395

Scenario 3: Fuel with PMPF

Data:

• Product: Regular gasoline
• Volume: 10,000 liters
• PMPF: R$ 5.80/liter
• Rate: 25%

Calculation:

ST Base = 10,000 × R$ 5.80 = R$ 58,000

ICMS-ST = R$ 58,000 × 25% = R$ 14,500

Refund and Complementation (STF Theme 201)

STF Decision

In 2016, the STF decided that:

• ✅ If the final price is LOWER than presumed → taxpayer is entitled to a refund
• ✅ If the final price is HIGHER than presumed → state CANNOT charge a complement

How to Request a Refund

1. Prove that you sold at a lower price
2. Submit a request to the state’s SEFAZ
3. Present fiscal documentation
4. Wait for analysis (time varies by state)

⚠️ Attention: Each state has its own procedure. Consult the local SEFAZ.

Ancillary Obligations

CEST – Tax Substitution Specifier Code

Mandatory 7-digit code in all operations with ST.

Format: XX.XXX.XX

Example: 01.001.00 (Automotive gasoline)

Specific CFOPs

• 5.401/6.401 – Sale with ST (substitute)
• 5.403/6.403 – Sale with ST already collected
• 5.405/6.405 – Sale with previously retained ST

GNRE/GARE

Guide for ICMS-ST collection in interstate operations.

• Issued by the tax substitute
• Collection before the goods are dispatched
• Specific revenue code by state

Products Subject to ST by Segment

Fuels and Lubricants

• Gasoline, diesel, ethanol, CNG
• Lubricating oils
• Base: PMPF (fiscal guideline)

Beverages

• Beers, soft drinks, waters
• Wines, spirits
• Base: MVA (40% to 80%)

Medicines

• Medicines for human use
• Pharmaceutical products
• Base: MVA (30% to 40%)

Auto Parts

• Parts, components, and accessories
• Tires, inner tubes
• Base: MVA (30% to 50%)

Construction Materials

• Cement, mortar
• Paints, varnishes
• Base: MVA (25% to 40%)

Common Errors

1. Using MVA without adjusting in interstate operation

❌ Wrong: Applying original MVA in interstate operation

✅ Correct: Calculate adjusted MVA

2. Forgetting to include IPI and freight in the base

ST Base = Invoice Value + IPI + Freight + Insurance + Other Expenses

3. Not informing CEST

Mandatory since 2017. Omission results in a fine.

4. Confusing PMPF with MVA in fuels

Fuels use PMPF, not MVA.

Frequently Asked Questions

1. Who is the tax substitute?

Usually the manufacturer or importer. In some cases, the wholesaler.

2. What is CEST?

7-digit code that identifies products subject to ST. Mandatory on the invoice.

3. Can I request a refund if I sell for less?

YES. STF decision guarantees the right to a refund (Theme 201).

4. How to calculate adjusted MVA?

Use the formula: [(1 + MVA) × (1 – Inter Rate) / (1 – Intra Rate)] – 1

5. Does fuel use MVA?

NO. Fuels use PMPF (Weighted Average Price to Final Consumer).

6. Where to consult products subject to ST?

ICMS Agreement 142/2018 and legislation of each state.

Compliance Checklist

Before issuing an invoice with ST:

• ☐ Is the product subject to ST? (consult CEST)
• ☐ Correct MVA for the destination state?
• ☐ Interstate operation? (calculate adjusted MVA)
• ☐ IPI and freight included in the base?
• ☐ CEST correctly informed?
• ☐ Correct CFOP?
• ☐ GNRE issued (if interstate)?
• ☐ Collection before dispatch?

Also read: ICMS Fuels 2025: New Rules and Impacts on Stations

Also read: Real Profit vs Presumed Profit 2025: Which is the Best Regime for Your Company

Also read: Tax Planning 2026: How to Legally Reduce Taxes

Related Articles

See also: ICMS Fuels 2025 | Tax Reform

Official Sources

• CONFAZ – ICMS Agreement 142/2018
• CONFAZ – CEST Table
• Complementary Law 87/1996 (Kandir Law)
• STF – Theme 201 (ST Refund)

Last updated: October 23, 2025

💼 Questions about ICMS-ST?

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