[Free translation]
In January of this year, we published Information No. 02-17, and later 35-17, addressing the changes that were introduced in the legislation on the Tax on Services of any kind (ISSQN), by Complementary Law 157/16.
We had already commented that the practical effects of the changes depended on the publication of a specific legal act of each municipality.
In this month of October the Municipality of Novo Hamburgo (NH) has published Complementary Law no. 3,058 / 17 to introduce such changes that become effective in NH, as of January 1, 2018.
As the changes have already been dealt with in the aforementioned newsletters, we have chosen not to repeat their content, so we will address in this information only an innovative aspect of this municipal law, which is not included in the Federal Complementary Law.
The novelty is that the municipality of NH changed the wording of item 14.05 of the list of services to increase the incidence of ISSQN. With the previous wording there would only be incidence when such activities were carried out on objects not intended for industrialization or commercialization.
With the current wording, according to the municipal law, there will be incidence of ISSQN regardless of destination. Look how the description of the item was:
14.05 - Restoration, reconditioning, conditioning, painting, processing, washing, drying, dyeing, electroplating, anodizing, cutting, cutting, plastering, sewing, finishing, polishing and the like.
With this amendment, and considering the judicial jurisprudence of the judiciary, we recommend that the companies affected by this change, evaluate the opportunity to seek in court the right to continue not paying ISSQN on such operations.
Taxpayers from other municipalities must wait for the publication of the municipal law of their domicile.
