3/30/2021
Since 2005, the Municipality of São Paulo requires that service providers established in different municipalities who provide services in São Paulo promote the Register of Companies Outside the Municipality of São Paulo (CPOM).
CPOM was created by Municipal Law No. 14,042/05 and attributes to the São Paulo service contractor the responsibility for the withholding and collection of service tax (ISS) for the Municipality of São Paulo, if the service provider does not have a regular registration in the CPOM.
The matter was submitted to the Supreme Federal Court (STF) in a virtual trial session. By eight votes to three, the STF decided that the registration obligation was unconstitutional, as well as ruled out the possibility of withholding the amounts due under the ISS.
According to Minister Marco Aurélio, municipalities are not allowed for imposing accessory obligations for taxpayers that are not part of the legal-tax relationship.
The decision can still be appealed, but it represents a victory for service providers.
Coauthors: Phillipe da Cruz Silva e Tiago Zonta Guerreiro
