ICMS exemption for PV modules and generators comes into force

Os two new agreements that were approved by Confaz (National Council for Financial Policy) at the beginning of the month – and which updated the provisions of the Agreement 101/97 – were duly published in the DOU (Official Gazette of the Union) this Thursday (21). 

With this, thechanges set out in ICMS Agreement No. 87/22 and ICMS Agreement No. 94/22 have been duly confirmed and came into force, allowing the solar energy market Brazilian can resume operations with ICMS exemption for photovoltaic modules and generators.

“The two agreements would come into force only after ratification in the DOU, which was what happened yesterday (Thursday). This is just a confirmation of what was discussed at the Confaz meeting at the beginning of the month. The publication did not change anything about the text and the only difference is that it has now come into force”, explains Wladimir Janousek, director of JCS Consulting and Services.

Understand the case

Modifications to the Harmonized System 2022, carried out by the WCO (World Customs Organization), brought changes to the NCM of photovoltaic equipment and systems. Therefore, ICMS agreements need to be updated appropriately by the end of March.

However, Confaz's tax benefits working group (GT 26) was unable to advance the discussion due to a strike by Federal Revenue employees. Therefore, the update was not completed beyond the original expected deadline. 

At the beginning of April, Confaz changed the ICMS agreement nº 101/97, taking effect in the period between April 1st and June 30th, 2022. The new change, which occurred on July 5th, brought the definitive solution to the issue, granting full exemption for operations with solar and wind energy equipment and components in the country.