ICMS tax is a form of sales tax that is applied to material items in Brazil. When extracted, the system converts this to a valid amount using a period as the decimal separator.

This tax appears on a Brazilian Nota Fiscal invoice as a standalone tax value that cannot be validated as a regular sales tax. This is because the line item amounts on the invoice already include this tax.

Kofax AP Agility captures the total ICMS tax amount in the ICMS field. The regular TaxAmount1 field is used to capture the IPI tax amount.

If the system identifies an invoice as a Brazilian Nota Fiscal, this field is mandatory. If no value for this field is extracted, the document is sent to the Validation Activity as invalid.

An extracted ICMS tax value, or one entered by a user manually, is validated mathematically under the following circumstances.

• More than one line item is extracted on the invoice.

• The ICMS tax value is greater than zero.

If both of these conditions are met then the ICMS tax value must be equal to the sum of the values extracted in the VAT Amount column of the line item table. If no VAT amount at line item level is extracted, then the system tries to extract a VAT rate to determine the VAT amount. If this cannot be done, the document is sent to the Validation Activity for a user to either correct the ICMS tax amount or enter the line level ICMS tax amounts in the VAT amount column.

During export, the ICMS tax amount is added to the total invoice tax value but is also stored in its own field. If line items are relevant for export, the line level unit prices and totals are output without including the ICMS tax.

Activate the ICMS Tax field in Settings > Invoice Processing > Capture Profiles > Tax Settings > Tax Configuration tab.

For more information on processing Brazilian invoices, refer to Brazil.