Reasons for exclusion from Simples Nacional

Carolina Fernandes
Apr 30, 2023
2 min read

The Simples Nacional legislation establishes some situations that can cause exclusion from the taxation regime. We are going to deal with some of them, the ones that are more common on a daily basis.

Among the reasons that cause exclusion from Simples Nacional, we can cite:

Excessive billing;

Realize activities that are forbidden

Failure to comply with the Law;

Indebtedness.

Excessive billing

The revenue allowed for Simples Nacional companies (Micro-company - ME) or (Small Business - EPP) is between R$360mil to 4.8 million. If you exceed this limit the company will be excluded from the regime.

! Important point. If the company exceeds the limit by up to 20%, but remains within the limit of Simples Nacional, ICMS and / or ISS are collected outside the following month, but the deadline for communication to the Revenue is different.

Deadline for communication: until the last business day of January of the calendar year following that in which the limit was exceeded by up to 20%.

Example: CNPJ opened in 2016 (not in the year of beginning of activity) At the beginning of September, the company identified that in August its accumulated gross revenue in the domestic market (RBA int) exceeded the limit by up to 20%. The revenue earned from January to August 2020 was R$5,000,000.00. The company must communicate the exclusion with effect, in principle, from 01/01/2021.

If the company exceeds 20%, the deadline to communicate: until the last business day of the month following the exceeding of more than 20% of the limit.

Example: CNPJ opened in 2019 (not in the start-up year) At the beginning of August/2020, the company identified that in the month of July/2020 its cumulative gross revenue in the domestic market (RBA int) exceeded the limit by more than 20%. The revenue earned from January to July 2020 was R$5,800,000.00. The company must communicate the exclusion with effect from 08/01/2020.

2. Carrying out activities that are prohibited

We can mention some activities that cannot be taxed by the Simples Nacional regime, among them, the ones that refer to the development of commercial and investment banks, credit, financing and investment or real state credit companies.

Still, there are some legal natures that are forbidden to the Simples Nacional, some of them being: cooperatives (except for the consumer ones), and joint stock companies, besides the forbidden activities.

3. Non-compliance with the Law: Companies that fail to comply with the legislation due to fraud or some type of conviction may be excluded from the Regime. The same occurs with possible fraud when the company fails to issue invoices when providing services or selling goods, in addition to the sale of goods that are related to contraband.

4. Indebtedness: This Regime does not allow companies to have debts of any nature, be it debts with the Internal Revenue Service, Treasury, Public Debts, Federal, State or Municipal, among others. The Federal Revenue Service has scored and notified the companies that are in this situation. In this way, companies should be aware not to be excluded from Simples Nacional, due to default.

The IRS provides a great manual with all the possibilities of exclusion from Simples Nacional, click here and download the material, or access the download on our website.

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