Brazil: 1200 businesses warned because of missing EFD Reports

The Ministry of Finance of Mato Grosse (SEFAZ-MT) reported 1.200 taxpayers that have not submitted their EFD reports between September and December of 2018.

Because of the irregularities, about R$ 30 in ICMS revenues (tax on goods and services moved across state lines) were missing. This is also due to the fact that the ICMS tax is based on simplified estimation rules.


How to react to a SEFAZ Notice

If a company or a taxpayer receives a notice issued by SEFAZ, he needs to submit his EFD report within 15 days and pay his ICMS debts. According to the institution responsible for monitoring those taxpayers, CMGC, the recipient of the goods has to calculate and the tax volume and pay it during the month when the goods were stored. In order to register for ICMS and calculate it correctly the tax payer or accountant have to follow the SEFAZ´ instructions as well as the regulations of Article 167 RICMS.


Penalties in case of Non-Compliance

The omission of submitting the EFD report, the submission of a faulty EFD report or its submission after the beginning of an inspection can lead to fines of up to 200 UPF (Unidade Padrao Fiscal, 1 UPF = ca. R$ 138 which equals up to 6.340 Euro) in addition to the tax debt. More importantly, the taxpayer loses his national registration and will be audited.

In order to grant the taxpayer`s compliance with taxation as well as the legal security of the tax, the CMGC can also decide on preventive administrative measures. These measures lead to the payment of the tax and can consist of administrative restrictions regarding the residence of the taxpayer or his categorization in terms of business sectors.


These regulatory changes could affect your business with view to customizing or support of your ERP/SAP system. Please contact us to learn about possible necessary reactions to the changes – we are happy to assist you!