IPI sobre Produto

IPI: how the rate is applied

IPI (Imposto sobre Produtos Industrializados) is a Brazilian federal tax created by art. 153, IV of the Federal Constitution. It hits industrialised products as they leave the factory and again on imports. The formula is IPI = base · rate. What makes it a selective tax is that the rate moves with how essential the product is, as laid out in the TIPI (Tabela de Incidência do IPI) and updated by decree. Basic foodstuffs sit at 0%, household appliances run 8–15%, cosmetics 20–30%, craft beer 4%, alcoholic beverages 10–20%, and cigarettes can climb past 300% for extra-fiscal reasons. So a base of R$ 1,000 at 10% gives you R$ 100 of IPI.

Brazilian context

IPI is collected on the NF-e issued by the manufacturer or importer, and it feeds the ERP's tax module. Tax reform under EC 132/2023 will phase IPI out over the 2026–2032 transition, handing its role to IBS+CBS plus a selective tax on harmful goods. Until that happens, you still have to compute IPI on every industrial invoice, and it stays part of fiscal planning and distributor pricing.

FAQ

Where do I find the rate for my product? Look it up in the current TIPI by NCM code. The TIPI gets updated by presidential decree and is consolidated by Receita Federal.

Does Simples Nacional pay IPI? No. The unified DAS already takes care of it. The one exception is imports, where IPI is charged on its own at customs clearance.

Is IPI part of the ICMS base? Only when you sell to a non-taxpayer or for the consumer's own use. In operations between industrial taxpayers, IPI stays out of the ICMS base.