Ordinance SRE No. 07/2026, published on March 13, introduced relevant changes to the rules applicable to the control and utilization of ICMS tax credits related to inventories of goods excluded from the tax substitution regime.
The main change consists of reinstating the 12-month period for the utilization of ICMS-ST credits on inventories, as originally provided for in Ordinance CAT No. 28/2020. The new rule, with retroactive effects as of January 1, 2026, revokes the extension previously introduced by Ordinance SRE No. 65/2025, which had allowed the credits to be utilized in 24 installments.
Ordinance SRE No. 07/2026 also establishes a specific transition rule for taxpayers subject to the Periodic Assessment Regime (RPA). Considering its retroactive effects, taxpayers who recorded credits at a rate of 1/24 in January and February 2026 may, in the March assessment, make a supplementary entry corresponding to the difference required to comply with the new criterion, and thereafter apply the 1/12 monthly rate for the remaining period.
This change occurs in the context of the gradual removal of several products from the tax substitution regime in the State of São Paulo, a movement initiated by Ordinance SRE No. 64/2025 and expanded by subsequent acts. Sectors such as pharmaceuticals, food, alcoholic beverages, and construction materials have already been impacted as of January 2026, while segments such as cosmetics, perfumery, and personal care products will be affected as of April 2026.
The retroactive effect established by the regulation requires increased attention to the proper calculation and reporting of ICMS-ST credits related to items excluded from the tax substitution regime, particularly due to the need for adjustments in the EFD.
In light of the above, it is recommended to review inventory assessments and entries recorded in the initial months of the year, as well as to adjust and parameterize systems in accordance with the new framework, in order to mitigate risks of inconsistencies and potential challenges by tax authorities.
