Changes in ICMS-ST tax calculation of CONVÊNIO ICMS 52/62 2017 in Dynamics 365 for Operations

Applies to: Dynamics 365 for Operations

Summary


This article describes a country-specific update for Brazil in regard to the application of new formula calculation for ICMS-ST base amount defined by CONVÊNIO ICMS 52/62 2017.

Overview


This new regulatory feature addresses the changes in the ICMS-ST base amount calculation through the CONVÊNIO ICMS 52/62/2017:

Base ICMS-ST => (((Operation amount + IPI tax amount+ Freight+ Insurance+ Other charges – Discounts) * (1+(%MVA / 100))) - ICMS amount) / (1- ICMS tax rate intra)

To address the required changes, the Tributary substitution method enum for ICMS-ST tax type was updated with new value Markup (Agreement 52/2017).

Tributary substitution method for ICMS-ST tax type with new value Markup (Agreement 52/2017) KB4055732

Note In case you change the value for the existing sales tax codes, the change will take effect only for the newly created SO/PO lines. If the SO/PO lines are already created and you want to use new formula, you need to update sales tax group/item sales tax group manually.

To illustrate the current formula for Markup and new for Markup (Agreement 52/2017), here is a simplified example:

Sales order with the following information

Fiscal establishment located in SP state

Customer located in RJ state

MVA = 40%

ICMS tax rate interstate = 12%

ICMS tax rate intrastate = 18%

Product amount R$ 1.000,00

Markup - current

Markup (Agreement 52/2017) - new:

ICMS

Base ICMS Inter = Product amount

Base ICMS Inter = (1.000,00 + 0,00 + 0,00 + 0,00 – 0,00)

Base ICMS Inter = 1.000,00

 

ICMS amount Inter = Base ICMS Inter * (Tax rate ICMS Inter / 100)

ICMS amount Inter = 1.000,00 * (12,00 / 100)

ICMS amount Inter = 120,00

 

ICMS

Base ICMS Inter = Product amount

Base ICMS Inter = (1.000,00 + 0,00 + 0,00 + 0,00 – 0,00)

Base ICMS Inter = 1.000,00

 

ICMS amount Inter = Base ICMS Inter * (Tax rate ICMS Inter / 100)

ICMS amount Inter = 1.000,00 * (12,00 / 100)

ICMS amount Inter = 120,00

 

ICMS ST

Base ICMS ST = (Product amount ) * (1+(%MVA / 100))

 

 

Base ICMS ST = (1.000,00 + 0,00 + 0,00 + 0,00 + 0,00 – 0,00) * (1+(40,00 / 100))

Base ICMS ST = 1.000,00 * 1,40

Base ICMS ST = 1.400,00

 

 

ICMS ST amount = (Base ICMS ST * (ICMS tax rate Intra / 100)) – ICMS amount Inter

ICMS ST amount = (1.400,00 * (18,00 / 100)) – 120,00

ICMS ST amount = 252,00 – 120,00

ICMS ST amount= 132,00

 

ICMS ST

Base ICMS ST = (((Product amount + Freight+ Insurance+ Other charges – Discounts) * (1+(%MVA / 100))) - ICMS amount Inter ) / ( 1- Tax rate amount intra)

 

Base ICMS ST =( ((1.000,00 + 0,00 + 0,00 + 0,00 + 0,00 – 0,00) * (1+(40,00 / 100))) - 120) / (1-18%)

Base ICMS ST = ((1.000,00 * 1,40) - 120) / (1-18%)

Base ICMS ST = 1.280,00 / (1-18%)

Base ICMS ST = 1560,98

 

ICMS ST amount = (Base ICMS ST * (ICMS tax rate Intra / 100)) – ICMS amount Inter

ICMS ST amount = (1.560,98 * (18,00 / 100)) – 120,00

ICMS ST amount = 280,98 – 120,00

ICMS ST amount= 160,98

 

More Information


Within this hotfix, an update for changes in ICMS DIF tax calculation for purchasing is also available. Please refer to the KB article explaining the feature setup for Microsoft Dynamics AX 2012 R3 which is applicable for Microsoft Dynamics 365 for Operations as well.

Hotfix information


How to obtain the Microsoft Dynamics AX updates files

This update is available for manual download and installation from the Microsoft Download Center.

Note You can refer to the above link and download the related hotfix.

Prerequisites

You must have one of the following products installed to apply this hotfix:

  • Microsoft Dynamics 365 for Operations

Restart requirement

You must restart the Application Object Server (AOS) service after you apply the hotfix.

If you are encountering an issue downloading, installing this hotfix, or have other technical support questions, contact your partner or, if enrolled in a support plan directly with Microsoft, you can contact technical support for Microsoft Dynamics and create a new support request. To do this, visit the following Microsoft website:

https://mbs.microsoft.com/support/newstart.aspx

You can also contact technical support for Microsoft Dynamics by phone using these links for country specific phone numbers. To do this, visit one of the following Microsoft websites:

Partners

https://mbs.microsoft.com/partnersource/resources/support/supportinformation/Global+Support+Contacts

Customers

https://mbs.microsoft.com/customersource/northamerica/help/help/contactus

In special cases, charges that are ordinarily incurred for support calls may be canceled if a Technical Support Professional for Microsoft Dynamics and related products determines that a specific update will resolve your problem. The usual support costs will apply to any additional support questions and issues that do not qualify for the specific update in question.

Note This is a "FAST PUBLISH" article created directly from within the Microsoft support organization. The information contained here in is provided as-is in response to emerging issues. As a result of the speed in making it available, the materials may include typographical errors and may be revised at any time without notice. See Terms of Use for other considerations.