FAQ: PIS/COFINS for Resale Purchases
Several distinguished scenarios are possible regarding calculation and posting of PIS and COFINS taxes on resale purchases. Each scenario depends both on the nature of the operation and the nature of the involved companies, from a fiscal perspective. To cover all possible approaches, SAP notes 947218, 1063650 and 1088901 have been delivered. However, their correct usage is sometimes dubious. Taking that into account, this paper seeks to provide an overview on the solutions and help you understand the involved concepts, plus choosing the right customizing.