(In) applicability of crediting PIS and COFINS on inputs in business activities

Abstract

The current National Tax System is extremely complex and allows for the emergence of numerous debates and interpretations about the current rules and the specification in this specific case. One of the current impasses is the inapplicability of crediting PIS and COFINS on inputs with regard to some business activities. Therefore, seeking to correlate the concepts and facts, this article has as its object the previous historical and conceptual context of the tax matter in general, covering the competences and tax principles, as well as the problem of the inapplicability of PIS (Integration Program) credit Social) and COFINS (Contribution to Social Security Financing) on inputs. The corresponding theme will be evidenced from the definition of inputs, which, according to the Federal Revenue of Brazil, must be measured in the light of essentiality or company criteria, considering the indispensability or importance of a certain item, good or service for the development of the activity economic performance performed by the taxpayer. The treatment of inputs in the PIS and COFINS legislation will be analyzed in light of the understanding of the Federal Revenue of Brazil, exposing the definition of the concept of "inputs'' with regard to the appropriation of credits and the legitimacy of private companies that carry out activities of resale are credited from their income arising from inputs used to carry out their economic activities. The deductive method and legislative, doctrinal and jurisprudential bibliographic research were used.