At a time when the annual Income Tax campaign takes place, many taxpayers are waiting for the final settlement to see if they will receive money back or if they still have tax to pay. What is not always clear is that the law sets minimum values for IR charges and refunds, which means that there are situations in which the company does not issue any invoice or make any refund.
In the case of IR, the rule is straightforward: there is no charge when the calculated amount is less than R$25, nor refund when the amount to be refunded is below R$10. This is the limit that applies to many taxpayers who, at this time of year, are already waiting for their tax situation to be regularized.
What changes in the IRS, IRC and VAT
In IRPJ, the legislation also sets a minimum amount of R$25 for collection, which means that, below this level, the amount is not required from the taxpayer. Regarding VAT, the law also provides for a minimum limit of 25 euros in certain settlements and in the issuance of respective debt certificates.
In practice, this shows that R$25 works as a reference in several taxes linked to income and consumption, but not in all. Therefore, looking only at the final value without confirming the tax in question can lead to wrong conclusions about what will or will not be charged.
Taxes where the limit drops to 10 euros
There is then a second group of taxes where the bar is lower. In IMI, AT’s own information indicates that, if the collection value is less than 10 euros, there is no obligation to pay or issue a billing note.
In Stamp Tax, when the settlement is carried out by the tax administration services, there is only settlement if the value is not less than 10 euros. As for IUC, the law waives payment and collection whenever the tax paid falls below this same amount.
The IMT follows the same logic as the 10 euros in the billing document, but with an important nuance: if an additional settlement is involved, the limit increases to 25 euros. Furthermore, when the amount of tax to be refunded is less than R$10, there is also no cancellation or refund.
IEC and the non-commercial beverage exception
In excise taxes, the general rule also points to 10 euros as the minimum charge limit.
The legislation also provides for a specific situation for non-commercial drinks, in which there is no charge when the limit of 30 liters of finished product per year and per producer is not exceeded.
When will there be a refund?
On the refund side, the limits are not the same for all taxes. In the IRS and IMT, there is only a refund when the amount to be refunded reaches at least 10 euros, while in the ISV the refund is only made when the amount reaches 30 euros, says the AT.
In practical terms, this means that a taxpayer may have a theoretical right to receive a small amount and still not see any transfer or “check” issued. The same goes for low-value debts, which may not even be collected, as long as they are below the legal minimum applicable to each tax.
Also read:
