ISS on Materials: Superior Court of Justice (STJ) Reaffirms Position on Deductions in Construction Services

Written by Corporativo

Published on 04/05/2023 at 17:30

Fonte: Divulgação

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Context of the STJ Decision on ISS for Materials in Civil Construction

The Superior Court of Justice (STJ) recently reaffirmed in its ruling of REsp 1.916.376/RS its jurisprudence regarding the calculation base of the Service Tax (ISS) in the civil construction sector. The decision establishes that the calculation base of the ISS is the price of the contracted civil construction service and that the deduction of the materials used is only possible if they are produced by the provider outside the construction site and sold with the incidence of the Tax on Circulation of Goods and Services (ICMS).

Discrepancy Between STJ and STF in the Past

It is important to mention that the Federal Supreme Court (STF) held a different position regarding the deduction from the ISS calculation base of materials used in civil construction, as established in Theme 247, on August 31, 2010. However, in the ruling of the same case submitted to the mentioned theme (RE 603.497), the STF opted to uphold the jurisprudential orientation of the STJ regarding the impossibility of deducting the materials used from the calculation base of the ISS on civil construction services.

Clarifications on the STJ Decision

According to Wilson Sahade, partner at the law firm Lecir Luz e Wilson Sahade Advogados, the 1st Panel of the STJ reaffirmed in the recent ruling that it is not possible to deduct the materials used from the calculation base of the ISS on civil construction services, except if produced outside the construction site and with a highlight of the ICMS incidence.

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Practical Implications of the STJ Decision

In practice, if the STF does not change its understanding again, the position of the STJ regarding the impossibility of deducting the materials used in civil construction services from the ISS will predominantly prevail. The deduction will only be possible if the material is produced outside the construction site and with the proper collection of the ICMS.

Impact on the Civil Construction Sector

The STJ decision regarding the deduction of the ISS on materials used in civil construction brings significant implications for the sector. Professionals involved should be aware of the conditions established by the jurisprudence to adequately plan their projects and ensure compliance with tax obligations.

In summary, the STJ reaffirmed its position on the deduction of the ISS for materials used in civil construction services, establishing that the deduction is only possible if the materials are produced outside the construction site and sold with the incidence of the ICMS. This decision has a direct impact on the construction sector.

ISS on Materials: Superior Court of Justice (STJ) Reaffirms Position on Deductions in Construction Services

Context of the STJ Decision on ISS for Materials in Civil Construction

Discrepancy Between STJ and STF in the Past

Clarifications on the STJ Decision

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Practical Implications of the STJ Decision

Impact on the Civil Construction Sector

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ISS on Materials: Superior Court of Justice (STJ) Reaffirms Position on Deductions in Construction Services

Context of the STJ Decision on ISS for Materials in Civil Construction

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Clarifications on the STJ Decision

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Impact on the Civil Construction Sector

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