Entrance Practice Test & Exam Prep | Brazil

The export operation is immune from ICMS, and the exporter is explicitly guaranteed the maintenance and utilization of all input tax credits accrued on acquired production inputs. The export operation is subject to ICMS at a reduced rate of 4%, which allows the taxpayer to recover accumulated credits. The export operation is exempt from ICMS, but all prior input tax credits must be annulled and refunded to the State Treasury. The operation is subject to a deferred ICMS tax burden that becomes payable if the foreign buyer resells the goods within the European Union.