The Plenary of the Federal Supreme Court (STF) declared unconstitutional provisions of a federal supplementary law that shifted the jurisdiction for the collection of the Tax on Services (ISS) from the municipality of the service provider to that of the service taker.
The decision, by majority of votes, was taken in the judgment of the Claim of Non-Compliance with a Fundamental Precept (ADPF) 499 and of the Direct Actions of Unconstitutionality (ADIs) 5835 and 5862, in the virtual session concluded on June 2.
The actions questioned the validity of provisions of Supplementary Law (LC) 116/2003, amended by LC 157/2016, which determined that the ISS would be due in the municipality of the service taker in the case of group or individual medical plans, fund and client portfolio administration, consortium administration, credit or debit card administration and financial leasing.
In 2018, Justice Alexandre de Moraes (rapporteur) granted an injunction to suspend the effect of the provisions, on the understanding that the new normative framework should clearly indicate the concept of “service taker,” generating legal uncertainty and the possibility of double taxation or incorrect tax incidence.
Read the full article on the STF website or in the report of the Valor Econômico newspaper.
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