What is ICMS complement in SAP FI - Financial Accounting?

SAP Term: ICMS complement

• Component: FI

• Component Name: Financial Accounting

• Description: In Brazil, a special form of ICMS levied when a company buys goods in a state other than its own, and the goods' usage is consumption. ICMS complement is calculated as the difference between the ICMS rate that the vendor charges and the rate valid in the customer's own state. Rates are based on the ship-from and ship-to tax regions.

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• Key Concepts: 
  ICMS complement is a tax levied by the Brazilian government on goods and services. It is a value-added tax (VAT) that is charged on top of the ICMS (Imposto sobre Circulação de Mercadorias e Serviços) tax. The ICMS complement is used to fund social programs in Brazil. 
  
  How to use it: 
  In SAP FI Financial Accounting, the ICMS complement is used to calculate the total amount of taxes due on a transaction. The ICMS complement is calculated based on the ICMS rate and the total amount of the transaction. The ICMS complement is then added to the ICMS amount to calculate the total taxes due. 
  
  Tips & Tricks: 
  When calculating the ICMS complement, it is important to ensure that the correct rate is used. The rate can vary depending on the type of goods or services being purchased. Additionally, it is important to ensure that all applicable taxes are included in the calculation. 
  
  Related Information: 
  For more information about ICMS complement, please refer to the Brazilian government’s website: http://www.receita.fazenda.gov.br/Legislacao/Leis/2006/Lei11172-06.htm