No Retroactive ICMS in Goods Transfers Between Establishments of the same taxpayer, Rules STF 1367
On August 22, 2025, the Brazilian Supreme Court (STF) concluded the trial related to Theme 1367 (leading case RE No. 1,490,708). The STF ruled, in the context of motion to clarify, that retroactive collection of ICMS is prohibited on transactions involving transfer of goods between branches of the same taxpayer.
The Court clarified that the effects of the modulation defined in ADC 49—effective as of 2024, except for cases pending as of April 29, 2021—was intended solely to protect the Tax Administration against refund requests and to regulate credit reversal, without authorizing new tax assessments regarding taxable events prior to 2024.
By majority vote of 8–3, the Court granted the motion to clarify and the decision became definitive.
For more information regarding this matter, we recommend the consultancy of our materials in our February Legal Update and our March April Update.
Our Tax team is available to discuss the issues addressed in the ruling and the main aspects that may impact our clients' businesses at TaxpartnersTC@mayerbrown.com.
This content was prepared with the collaboration of intern Bruno Vieira.
