What is ICMS?
ICMS is the state tax on the circulation of goods and on interstate transport and communication services. Each state sets its own internal rates, dates and rules.
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Current Rate (Monthly, on each state's calendar.)
Internal rates vary by state. Interstate sales: 12% or 7% depending on the destination, 4% for imported goods.
Example
A company in one state selling goods to a business in another state charges the interstate rate set for that destination, not its own state's internal rate.
How ICMS works in Brazil
ICMS is reported through state systems and the company needs a state registration (Inscrição Estadual). Simples Nacional companies pay ICMS inside the DAS, and an MEI pays a fixed R$1 a month. Under the reform, ICMS is reduced from 2029 and extinguished in 2033. AccountsOS does not file ICMS returns.
Related terms
ISS is the municipal tax on services. Each municipality sets its rate within the national range and its own rules for invoices and payment.
The CBS (federal) and the IBS (state and municipal) are the new consumption taxes created by Constitutional Amendment 132/2023 and Lei Complementar 214/2025. They replace PIS, COFINS, ICMS and ISS over 2027 to 2033.
The NF-e is the electronic invoice for goods, authorised by the state SEFAZ. The NFS-e is the electronic invoice for services, now on the national standard. Both are mandatory, and AccountsOS issues neither.
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