On 04/19/2023, the trial at the Brazilian Supreme Court that decided to modulate the effects of ADC 49 was concluded.
In this suit, the en banc of the Supreme Court had already decided, at the time of the adjudication upon the merits, for the non-levy of ICMS (State VAT) on the transfer of goods between establishments of the same owner.
Minister Edson Fachin, at the time, was on point in regards to summarizing the case: “the interstate movement under discussion, as it is merely physical, would be equivalent to moving merchandise from one shelf to another, which undoubtedly does not constitute a concrete taxable event”.
The modulation of the effects, determined by the majority of votes of the Supreme Court, determines that said conclusion will only produce effects from the start of 2024, except for the administrative and judicial proceedings pending conclusion until the date of publication of the minute of judgment of the aforementioned adjudication upon the merits.
