We have a local legal requirement by Brazilian Business
For VAT Taxes, if you become the final consumer of a material, you have to reverse the tax credit you took at purchase. So, if you write-off a finished pack, you need to reverse any tax credit taken when purchasing raw materials to make that finished pack. Tax credit Reversal must be calculated over:
- Inventory adjustment;
- QA Samples;
- Write-off....
what is the recommended process for Brazil tax credit reversal ?
for example
if the finished good is scrapped ,
using exploded summarised production BOM for the finished good ,
based on the scrapped quantity
BOM components need to retrieved together with nfe values for tax
to calculate the corresponding tax credit return
Bluesky
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