{"id":2741,"date":"2025-10-13T09:56:56","date_gmt":"2025-10-13T12:56:56","guid":{"rendered":"https:\/\/oliveiraalves.com.br\/?p=2741"},"modified":"2025-10-13T17:12:01","modified_gmt":"2025-10-13T20:12:01","slug":"sao-paulo-anuncia-exclusao-de-setores-do-regime-de-substituicao-tributaria-do-icms-a-partir-de-2026","status":"publish","type":"post","link":"https:\/\/oliveiraalves.com.br\/en\/sao-paulo-anuncia-exclusao-de-setores-do-regime-de-substituicao-tributaria-do-icms-a-partir-de-2026\/","title":{"rendered":"S\u00e3o Paulo Announces Exclusion of Sectors from the ICMS Substitution Tax Regime Starting in 2026"},"content":{"rendered":"<p>On October 2, 2025, the <strong>Department of Finance and Planning of the State of S\u00e3o Paulo<\/strong> issued <strong>Ordinances SRE No. 64 and No. 65<\/strong>, introducing one of the most significant changes in recent years to the <strong>ICMS Substitution Tax (ST) system<\/strong>.<\/p>\n<p>The new rules will take effect <strong>as of January 1, 2026<\/strong>, directly impacting several sectors of S\u00e3o Paulo\u2019s economy.<\/p>\n<p><strong>What Changes in Practice?<\/strong><\/p>\n<ul>\n<li><strong>Exclusion of more than 130 goods<\/strong> from the ST regime, distributed across <strong>12 economic segments<\/strong>. Among them are <strong>pharmaceuticals, alcoholic beverages, lamps and reactors, auto parts, juices, coconut water, snacks, glass, bricks, and other construction materials<\/strong>.<\/li>\n<li><strong>Full revocation of Annexes IX and X<\/strong> of <strong>Ordinance CAT 68\/2019<\/strong>, which previously covered pharmaceuticals and alcoholic beverages, respectively.<\/li>\n<li><strong>Exclusion of items<\/strong> from other annexes (XIV, XV, XVI, XVII, and XX), thereby simplifying the list of goods subject to the regime.<\/li>\n<li><strong>Existing inventories as of 12\/31\/2025<\/strong> must be adjusted in accordance with <strong>Ordinance CAT 28\/2020<\/strong>, ensuring a proper transition between regimes.<\/li>\n<li><strong>Financial adjustments<\/strong> may be <strong>paid in up to 24 monthly and consecutive installments<\/strong>, starting in <strong>January 2026<\/strong>, mitigating the immediate cash flow impact on companies.<\/li>\n<\/ul>\n<p><strong>Why Did the State Adopt This Measure?<\/strong><\/p>\n<p>The official justification is to <strong>simplify the tax system<\/strong> and prepare S\u00e3o Paulo for the upcoming <strong>Tax Reform on Consumption<\/strong>, which will replace ICMS with <strong>IBS\/CBS<\/strong>.<\/p>\n<p>In addition, the exclusion from the ST regime is expected to:<\/p>\n<ul>\n<li><strong>Reduce bureaucracy and compliance costs<\/strong> for companies;<\/li>\n<li><strong>Improve cash flow<\/strong>, since ICMS will no longer be collected in advance;<\/li>\n<li><strong>Reduce tax litigation<\/strong>, especially refund claims related to <strong>ICMS-ST overpayment<\/strong>, where the actual retail price was lower than the presumed taxable base.<\/li>\n<\/ul>\n<p><strong>Expected Impacts for Companies<\/strong><\/p>\n<p>The changes have <strong>immediate effects<\/strong> on the fiscal and operational routines of companies. Key points of attention include:<\/p>\n<ol>\n<li><strong>Pricing and Price Formation<\/strong>\n<ul>\n<li>Products excluded from the ST regime will now have ICMS calculated on the <strong>actual transaction value<\/strong>, requiring updates to pricing tables and profit margins.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Inventory Management<\/strong>\n<ul>\n<li>Inventories existing as of <strong>December 31, 2025<\/strong> must undergo a specific inventory assessment in accordance with <strong>Ordinance CAT 28\/2020<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Financial Planning<\/strong>\n<ul>\n<li>Despite the possibility of 24-month installment payments, companies will need to organize <strong>cash flow<\/strong> to accommodate the <strong>inventory adjustment<\/strong> and the <strong>new tax collection method<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Accounting and Systems Compliance<\/strong>\n<ul>\n<li><strong>ERP and accounting systems<\/strong> must be updated to differentiate goods that remain under the ST regime from those that are no longer subject to it.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Interstate Operations<\/strong>\n<ul>\n<li><strong>Companies operating nationwide<\/strong> must remain attentive: the exclusion of ST in S\u00e3o Paulo <strong>does not imply<\/strong> that the same products will cease to be subject to ST in other states.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<p><strong>Recommendation<\/strong><\/p>\n<p>Companies should <strong>immediately begin preparing for this transition<\/strong>, by reviewing internal procedures, adjusting systems, and reassessing <strong>pricing and compliance strategies<\/strong>.<\/p>\n<p>Our firm is closely monitoring this matter and is available to assist your company in <strong>impact assessment<\/strong>, <strong>accounting and tax adjustments<\/strong>, and the <strong>implementation of measures<\/strong> necessary to ensure a <strong>safe and efficient transition<\/strong>.<\/p>","protected":false},"excerpt":{"rendered":"<p>On October 2, 2025, the Department of Finance and Planning of the State of S\u00e3o Paulo issued Ordinances SRE No. 64 and No. 65, introducing [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":2742,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2741","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tributario"],"acf":[],"_links":{"self":[{"href":"https:\/\/oliveiraalves.com.br\/en\/wp-json\/wp\/v2\/posts\/2741","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/oliveiraalves.com.br\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/oliveiraalves.com.br\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/oliveiraalves.com.br\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/oliveiraalves.com.br\/en\/wp-json\/wp\/v2\/comments?post=2741"}],"version-history":[{"count":2,"href":"https:\/\/oliveiraalves.com.br\/en\/wp-json\/wp\/v2\/posts\/2741\/revisions"}],"predecessor-version":[{"id":2746,"href":"https:\/\/oliveiraalves.com.br\/en\/wp-json\/wp\/v2\/posts\/2741\/revisions\/2746"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/oliveiraalves.com.br\/en\/wp-json\/wp\/v2\/media\/2742"}],"wp:attachment":[{"href":"https:\/\/oliveiraalves.com.br\/en\/wp-json\/wp\/v2\/media?parent=2741"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/oliveiraalves.com.br\/en\/wp-json\/wp\/v2\/categories?post=2741"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/oliveiraalves.com.br\/en\/wp-json\/wp\/v2\/tags?post=2741"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}