Tax · SPD Advocacia

Is your company using all of its input credits? The concept is broader than the old Receita Federal view

The STJ (Brazil's Superior Court of Justice) defined an input, for PIS and Cofins (federal contributions on revenue) credit purposes, as anything essential or relevant to the business. Receita Federal (Brazil's federal tax authority) adopted this standard. With PIS and Cofins being replaced by the CBS (the new federal contribution on goods and services) in 2027, reviewing the credits of the last five years has become more urgent.

STJ Tema 779Professional confidentialityReplies on WhatsApp

Tell us about my case Send documents

Tema 779

Essentiality or relevance

In REsp 1.221.170/PR (decided on February 22, 2018), the STJ held that the credit rules of Normative Instructions SRF 247/2002 and 404/2004 are unlawful and that the concept of input must be assessed under the criteria of essentiality or relevance, considering how important the item is to the company's activity.

Normative Opinion Cosit 5/2018 adopted this position and uses the so-called subtraction test as an indicative tool: if removing the item harms production or the provision of the service, there is an indication that it is an input.

Timing

Why review now

Input credits apply to companies under the non-cumulative regime, as a rule those taxed on actual profit (lucro real). Under the tax reform schedule published by the Ministry of Finance, the CBS replaces PIS and Cofins in 2027. Unused credits from the last five years may be recovered through an administrative request or a lawsuit, depending on the case.

Requirements

What we review

Production process

Stages of the activity and items used.

Tax filings

EFD-Contribuições for the last five years.

Expenses

Costs currently left out of the credit.

Regime

Non-cumulative.

Source: STJ, Tema 779 (REsp 1.221.170/PR); Parecer Normativo Cosit 5/2018.

What is your case?

Situations the firm handles

Manufacturing

Maintenance, packaging and PPE

Credit on items essential to production.

STJ, Tema 779

Transportation

Fuel, tires and fleet maintenance

Relevance to the service provided.

STJ, Tema 779

Construction

Construction inputs under the non-cumulative regime

Check of the regime and the items.

Case review

Agribusiness

Inputs for rural production

Credits along the agribusiness chain.

STJ, Tema 779

Services

Costs required by law or contract

Relevance criterion.

Parecer Cosit 5/2018

Tax assessment

Credits disallowed by Receita Federal

Defense based on Tema 779.

STJ, Tema 779

This page provides general information, does not replace an analysis of the case and there is no guarantee of results.

Step by step

How the firm works

Mapping. We learn the production process with the company team.
Cross-check. We compare costs with the credits taken in the EFD.
Action. Amended filings, credit request or lawsuit, depending on the risk.
Defense. Representation in credit disallowances and tax assessments.

+5 thousand cases handledTen years of law practicePractice before the STJ and the STFFeatured in G1, UOL, Estadão and TV Globo

Case review

Let us review your company credits

Answer the questions, one at a time. At the end you can attach documents, which go straight to a folder in the firm's Drive, and send the summary via WhatsApp. Everything is protected by attorney-client confidentiality.

Common questions

Frequently asked questions

Can every company take input credits?

The credit applies to the non-cumulative PIS and Cofins regime, as a rule for companies taxed on actual profit.

What counts as an input?

Anything essential or relevant to the activity, according to the STJ. Receita Federal uses the subtraction test as an indication.

What changes with the CBS?

Under the reform schedule, the CBS replaces PIS and Cofins in 2027. Past credits need to be reviewed within the five-year period.

Do you serve companies in other states?

Yes. We work throughout Brazil, with electronic case files and online meetings.

How does engagement work?

After the review, the firm sends a written fee proposal before any engagement.

Lawyer for PIS and Cofins credits on inputs

SPD Advocacia, based in Anápolis-GO, serves companies throughout Brazil and abroad in reviewing PIS and Cofins credits, together with their accountants.

STJ Tema 779

An input is anything essential or relevant to the company's activity.

Before the CBS

Reviewing the last five years becomes more urgent as PIS and Cofins are replaced in 2027.

Informational content, in accordance with OAB (Brazilian Bar) Provision 205/2021. Each case depends on a review of the documents, and no result is promised.