Do you want to know what IPI is and how it impacts the price of the vehicle? So you are in the right place. In this matter, you will find everything about the tax. Check out!
Provided for in the Federal Constitution, the Tax on Industrialized Products (IPI) is a pecuniary contribution levied on all items that undergo an industrialization process. Thus, although almost everything is subject to this tax, few people actually know what IPI is.
So you want to learn about who is required to pay it and who is exempt? Keep reading!
What is IPI?
In practical terms, the Tax on Industrialized Products is nothing more than a federal tax applied on industrialized items or imported foreign products. The rates applied in this type of taxation vary according to the specificity of the item.
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Broadly speaking, the list of products related to this charge is quite extensive, because it refers to any good or merchandise that is subjected to an industrialization process, such as automobiles, cell phones, tablets, chairs, or even a simple wheel rim.
To understand what IPI is on the invoice, therefore, it is enough to know that the federal tax is charged whenever a certain product leaves the factory. However, the tax can also be applied in other situations, such as:
- in customs clearance, in the case of an imported product;
- in the auction of seized or alienated products.
What are the modalities of the IPI?
As we have seen, the “industrialized” product refers to all merchandise submitted to any type of industrial process in its manufacture, even if it occurs partially or whose industrialization is intermediate. According to the IPI Regulation (RIPI), the modalities in which the tax is applied are:
- Transformation: consists of changing the raw material into a different product;
- Improvement: it is the improvement of the same product;
- Assembly: comprises the process of obtaining new products from the union of different parts or parts;
- Packaging and repackaging: refers to the presentation of a product in relation to its packaging;
- Renovation or reconditioning: operation in which a certain good is renewed with the purpose of selling it to third parties.
Who is required to pay?
As established by Decree 7.212/2010 — which regulates and establishes guidelines on the tax — understanding what IPI is also important to learn who are the agents required to pay the federal tax. In short, they are obliged to pay it:
- the importer, in the customs inspection of the imported foreign products;
- the industry, when a certain item leaves the factory;
- in establishments equivalent to industry, when the goods leave the premises, such as product importers or industry branches;
- companies that use paper intended for the printing of books or newspapers and periodicals, except in the case of publishing houses or journalistic institutions.
What is the IPI rate?
Contrary to what most people believe, the IPI is not a fixed federal tax. This is because the rate of incidence of the Tax on Industrialized Products may vary according to the type of merchandise, as provided for in the Federal Constitution of 1988.
Therefore, the rates — the rate used in the calculation of the final value of a tax — must be determined according to the essentiality of a particular good or product. In practice, items in the “superfluous” category have higher tariffs. However, essential products usually have a lower rate.
In February, President Jair Bolsonaro signed a decree reducing the IPI by up to 25%, applicable to most industrialized products.
How to calculate the IPI?
In general, the calculation of the Tax on Industrialized Products is quite simple. So, to determine the tax amount, just follow the step by step below:
- Check the table in order to determine which rate is applicable to the product you wish to calculate the IPI;
- Identify the calculation basis (product value + insurance + shipping + production expenses);
- Finally, simply multiply the result of the calculation basis by the tax rate.
Got confused? So do not worry. Check out a practical example of the calculation of the IPI.
Consider an item whose calculation basis is BRL 5,000 (that is, the value of the goods plus the insurance, delivery, and other costs equals BRL 5,000), with the rate of such goods equal to 7%, the tax amount, in this case, will be R$ 350. After all, 5,000 x 7% = 350.
Ready. Now you already know what IPI is, which modalities it applies, rates, obligations, and exemptions. In addition, we also show a very simple and practical way how to calculate the IPI. Remembering that, to pay it, it is also very easy, just issue the Darf or DAS (in the case of companies classified in Simples Nacional).
