SEFAZ-MG Auditor Fiscal Practice Questions - SEFAZ-MG Auditor Fiscal Da Receita Estadual (Minas Gerais, Brazil) Exam

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A textile manufacturer headquartered in Juiz de Fora/MG transfers raw materials to its industrial branch located in Uberlândia/MG without transferring legal ownership. In light of STF Declaratory Action of Constitutionality No. 49 (ADC 49), Complementary Law No. 204/2023, and Minas Gerais State Law No. 6.763/1975, how is this internal movement treated for ICMS purposes?

The transaction is fully taxable at the standard 18% internal rate, because any physical movement of inventory across municipal boundaries generates ICMS debt. The physical transfer between establishments of the same legal owner is characterized by constitutional non-incidence (não-incidência) of ICMS, and the taxpayer maintains the right to transfer accrued input tax credits. The transfer is considered an exempt operation (isenção) that strictly obligates the taxpayer to reverse (estornar) all previously appropriated input credits. The operation is subject to ICMS Substituição Tributária (ICMS-ST), requiring the dispatching establishment to withhold tax based on presumed resale value.

Correct Answer:

The physical transfer between establishments of the same legal owner is characterized by constitutional non-incidence (não-incidência) of ICMS, and the taxpayer maintains the right to transfer accrued input tax credits.

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