Simples Nacional and Divergence in Credit and Debit Card Sales

messi69 · Post by **messi69** » Sun Feb 02, 2025 3:33 am

In Brazil, small and medium-sized companies often face challenges related to tax management, especially when it comes to ICMS collections.

The ball is now in the court of the State Finance Departments, which have fined companies under the Simples Nacional tax regime, alleging tax evasion on unregistered sales by cross-referencing information between invoices issued and data obtained from payment machine companies.

Notification of State Tax Authorities
Credit and debit card operators send detailed italy telegram data information about sales made on the machines to the State Tax Authorities. Based on this data, the Tax Authorities compare the amounts declared by the companies in the PGDAS (Programa Gerador do Documento de Arrecadação do Simples Nacional) with the information provided by the card operators. In many cases, this comparison reveals discrepancies, leading the Tax Authorities to conclude that there was tax evasion.

For example, the state of Minas Gerais requires financial institutions and card administrators to report monthly to the Treasury Department on transactions made with debit and credit cards. If your company does not correctly declare all sales made via card in the PGDAS, the tax authorities may consider that there has been tax evasion.

Consequences of Divergences
Companies under the Simples Nacional regime are required to pay ICMS based on reduced and unified rates. However, when tax evasion occurs, state tax authorities apply rates such as 18% in Minas Gerais, which can lead to exorbitant charges. This procedure is based on art. 13, § 1, item XIII, item “f” of Complementary Law No. 123/06 , which requires ICMS on sales not covered by a tax document.

This practice can result in absurd and unpayable debts. If your company has a monthly average of R$20,000.00 in unpaid sales for five years, the accumulated debt can reach R$216,000.00 in ICMS alone. With interest and fines, this amount can easily double, raising the amount owed to half a million reais, which can lead companies to bankruptcy.