Federal Law No. 12,305/2010, which establishes the National Solid Waste Policy, provides that manufacturers, importers, distributors and retailers of electrical and electronic equipment must implement, structure and operate reverse logistics systems, so as to ensure the return of products discarded by consumers and the subsequent environmentally sound final disposal of what is returned.
However, there was a challenge in implementing reverse logistics systems: the tax burden on these waste return and/or final disposal activities, including the transportation required for reverse logistics.
To solve the problem, the National Council for Fiscal Policy – CONFAZ entered into ICMS Agreement No. 99/2018, authorizing nine States (AL, AM, BA, ES, PR, PE, RJ, SC and SP) to grant an exemption from the Tax on the Circulation of Goods and Services (ICMS) on transactions involving electrical and electronic products and their components discarded by consumers, as well as on the transportation of such products within those States. The agreement removes the tax barrier that affected the reverse logistics system.
Each of the nine participating States must now provide for the application of the tax benefit in its territory and define the related operating procedures.
The agreement is available at: https://www.confaz.fazenda.gov.br/legislacao/convenios/2018/convenio-icms-99-18
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