On January 5, 2022, Complementary Law No. 190/2020 was published, regulating the levy of the differential ICMS rate (DIFAL) on goods transactions and services provisions to a consumer domiciled in another state.

In brief, if the consumer (recipient) is an ICMS taxpayer, the DIFAL is due. On the other hand, if the consumer is not an ICMS taxpayer, the tax payment is a duty of the goods sender or the services provider; in this case, the DIFAL must be paid to the State where the good physically entered or where the services provision is concluded.

Please note that these rules are not applicable to an interstate passenger transport service whose customer is not an ICMS taxpayer. In this case, the internal tax rate must be collected to the State where the service started or where the carrier is located if there is an irregular situation due to the lack of tax documentation or when followed by unduly documentation.

According to article 3 of the complementary law, its effectiveness is subject to the provisions of subparagraph "c" of item III of art. 150 of the Brazilian Constitution (the 90th principle).