In a judgment handed down by the 3rd Panel of the Superior Chamber of the Administrative Council of Tax Appeals (CARF), the taxpayer’s right to use PIS/COFINS credits for expenses with inputs was recognized.
The case analyzed dealt with credits for expenses related to soil, cultivation and agricultural pesticides for the production of sugarcane, an input used by the sugar and alcohol industry.
The decision states that the crediting of expenses is due to their relevance to the production process, based on Normative Opinion No. 5/2018 of the Federal Revenue Service.
This important ruling ultimately provides greater security to taxpayers, thus enabling companies to review the way PIS/COFINS is calculated with a view to taking advantage of credits for materials and products used in the development of inputs.
