| Update: | Compliance Alert - The state of Santa Catarina takes a significant step towards elimination of DIME |
| Date: | 2024-04-12 |
The State Department of Finance (SEF/SC) of Santa Catarina has taken a significant step towards phasing out the Declaration of ICMS and Economic Movement (DIME).
The elimination of the DIME is part of the measures outlined in Santa Catarina's Fiscal Adjustment Plan (Pafisc), scheduled for completion in the second half of 2024.
Progress in this extinction project was marked by the launch of the EFD-ICMS/IPI* declaration pre-validation. This service, developed by the Finance Secretariat (SEF) in partnership with the Federal Revenue, allows a preliminary analysis by the Santa Catarina tax authorities regarding compliance with adjustments to the Digital Fiscal Bookkeeping (EFD).
What is DIME?
DIME (Declaration of ICMS and Economic Movement) is an accessory obligation required by the State Department of Finance of Santa Catarina. This declaration aims to inform the economic activity of ICMS taxpayers in the state, detailing operations performed and tax amounts due.
Currently, companies must fill out the DIME with detailed information about their operations, such as sales, purchases and, among others, financial transactions. This data is used to calculate and monitor the ICMS owed by companies.
Pre-Validation of the EFD-ICMS/IPI Declaration
The new functionality will be available in the Validating Program (PVA) from 22 April 2024, as well as through software integration via API. Pre-validation via PVA is optional but allows taxpayers to identify errors in the declaration before submission, facilitating corrections and adjustments.
All validations performed by the service will be based on the rules of Table 5.1.1. The absence of errors does not mean that the taxpayer will not have pending issues in Fiscal Web, as web analysis involves more complex data cross-checks.
How to Use the New Functionality?
Software companies can already implement the service in their systems. To do this, the Treasury has provided an API (Application Programming Interface) and a Practical Guide for the Use of Pre-Validation by Third-Party Software, accessible at this link.
For clarification on implementing the pre-validation service, interested parties can open a request in the Fiscal Service Help Center with the subject SPED FISCAL. This initiative by SEF/SC represents a significant advancement in simplifying and modernizing tax obligations, making compliance with legal requirements more efficient for taxpayers and promoting greater legal certainty in commercial operations.
* The EFD-ICMS/IPI is a mandatory declaration for taxpayers of ICMS (Tax on Circulation of Goods and Services) and IPI (Tax on Industrialized Products). It represents the tax records of these taxpayers and must be presented following the provisions set out in tax legislation.