On June 18, 2025, the Brazilian Federal Revenue Service (RFB) published Advance Ruling (Solução de Consulta) COSIT No. 90/2025, with significant implications for companies subject to the non-cumulative regime of PIS and COFINS.
According to this new guidance, expenses related to freight and insurance on the acquisition of inputs used in production or in the provision of services give rise to PIS and COFINS credits, even when the inputs themselves are subject to a zero rate. The measure confirms and formalizes an interpretation that had already been advocated by several taxpayers, based on the essential nature of freight to productive activities.
The RFB grounded its position on:
- The concept of “input” as defined by the Superior Court of Justice (STJ) in REsp 1.221.170/PR – Theme 779, which recognizes the right to credits on expenses essential to the company’s activities; and
- Normative Instruction RFB No. 2,264/2025, which expressly included freight and insurance among the expenses eligible for credit under Article 176, §1, item XXIII.
Possibility of Retroactive Recovery of Credits
Another relevant aspect is that the RFB expressly admitted the extemporaneous use of such credits, subject to the five-year statute of limitations. This allows companies to amend their EFD-Contribuições and DCTF filings to recover amounts unduly paid or overpaid in recent years.
Recommended Actions for Companies
- Review tax filings from the past five years, focusing on input acquisition transactions accompanied by freight and/or insurance;
- Assess the feasibility of utilizing retroactive credits through amendment of ancillary obligations;
- Adjust internal bookkeeping and expense classification procedures to ensure freight on inputs is properly identified and credited;
- Maintain adequate supporting documentation, such as freight invoices directly linked to the acquisition of inputs.
Practical Impact
This new rule from the Federal Revenue Service seeks to standardize the interpretation on the use of PIS and COFINS credits while creating a concrete opportunity for companies in the industrial, commercial, and service sectors to recover amounts.
Our firm is available to assist in analyzing credit opportunities, amending filings, and implementing improvements in your company’s tax compliance processes.