What is ICMS-ST?

ICMS-ST, or ICMS Substituição Tributária, is a Brazilian tax system related to the Tax on Circulation of Goods and Services (ICMS). It's a mechanism where the tax is collected earlier in the supply chain, typically from the manufacturer or importer, instead of at each stage of distribution. This simplifies tax collection and reduces tax evasion risks. It is commonly used on products like beverages, tobacco, auto parts, and fuel.