The city council has changed the method of service provision recognition, the reference period to be considered is now going to be the month following the service provision, regardless of the service provider being paid or not.
On 05/23/2022, the Nota Carioca portal began to consider as reference for the purpose of withholding the service tax on services taken, the month following the provision of such services, even if the provider has not been effectively paid, as provided for in Law no. 7.000/2021, which made several amendments to the tax code of the municipality of Rio de Janeiro.
Therefore, as of that date, the Nota Carioca portal started to apply such different treatment given to withholding, which concerns the tax recognition criterion and, consequently, its maturity date.
Thus, the taxpayer needs to pay extra attention with invoices received from service providers and similar documents, including provisional invoices (RPAs) received from abroad.
Written by Romário Sousa, Tax Analyst at Drummond Advisors