03 Apr 2023

IMPORTANT COMMUNICATION for Brazilian Suppliers and Dealers (Electronic Invoice Management)

Subject: Purchase orders adequacy – MP 1.159/2023 – Exclusion of ICMS from the PIS/Cofins calculation basis.

Dear supplier,

We hereby inform you that as of 05/01/2023, IVECO GROUP will adjust its purchase registration system, to adapt to the provisions of the PIS/COFINS calculation base, imposed by MP 1.159 of 01/12/2023, amending Law 10.637/2002 and Law 10.833/2003. Then, from this date onwards, IVECO GROUP purchase orders will be composing the price excluding ICMS from the PIS/Cofins calculation base.

As the information above, IVECO GROUP will be updating the price list in its purchase orders (the net price will have no change, only in the composition of the gross price), as of the said date and we ask you to that, likewise, make the necessary adjustments to its billing systems, in order to avoid any discrepancies between contracts / purchase orders and their invoices, consequently causing discrepancies in amounts at the time of receipt and generating debit notes referring to the amounts overcharged.

It is also worth mentioning that in the past, IVECO GROUP, ensuring transparency with its suppliers, had already sent a notice requesting the exclusion of ICMS from the PIS/Cofins calculation base in accordance with the decision of the STF in May /21 in judgment of motions for clarification of RE 574.706.

Lastly, we would like to inform you that with regard to suppliers covered by the NATIONAL RECOF (who invoice with the suspension of PIS/Cofins) and suppliers who apply the full deferral of ICMS, they will not suffer any impact from this change in the methodology for composing Purchase Orders.

Certain of your understanding, we are at your disposal.

If you have any tax questions, please contact jose.nascimento@stellantis.com +55 31 997790806 or +55 31 995942393.

Yours sincerely,

IVECO GROUP - TAX LATAM