The federal government is preparing a temporary measure to tax all foreign purchases by 60%
May 4, 2022
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The federal government is preparing a temporary measure tax all goods imported from marketplaces such as AliExpress, Shopee and Wish by 60%. The flat rate of 60% currently
The federal government is preparing a temporary measure tax all goods imported from marketplaces such as AliExpress, Shopee and Wish by 60%. The flat rate of 60% currently only applies to products over $50. The new temporary measure is intended to tax all products purchased on the platforms. The government’s action is a response to a demand by Brazilian businessmen led by Luciano Hang, owner of the Havan chain, against the so-called “digital street vendor”.
OUR the temporary measure aims to prevent companies from importing CPF products (individually) so as not to pay tax due. At the end of April, MP Oleksandr Frota had already submitted a bill to levy an import tax on all purchases made through e-commerce. However, the deputy himself shelved the project, butIt seems that the federal government does not want to give up on this issue.
Currently, international marketplaces such as Shopee and AliExpress are similar to the duty-free shops at Brazil’s international airports. Places where the consumer can shop tax-free while respecting the price cap. According to the Brazilian Institute of Tax Administration and Planning (IBGPT), the purchase of goods in the market should become more bureaucratic. “Purchasing goods from abroad using the application should become more bureaucratic, expensive and time-consuming, which will reduce consumer relations in Brazil. And, perhaps, the profitability for the customs and tax service is not even worth it, with a larger volume of low-value products for classification, control and inspection.”, commented Douglas Herrero, IBGPT Managing Partner.
Mercado Livre will also be affected but supports taxation.
A portion of MercadoLibre’s sales are carried out by individuals who may be affected by the new taxation of all transactions. However, Ricardo Lagreca, Mercado Livre’s senior legal director in Brazil, said the company supported the move proposed by the federal government.
This no-tax rule was made for sales between individuals. And some platforms have made the business model in the interpretation gap, as if it was an unprofessional sale, and in fact you have thousands of goods entering the country without any taxation, and products that are counterfeit, without an invoice. without ICMS collection. This sequence of illegal activities has spawned this movement that we support – Ricardo Lagreca, Senior Legal Director of Mercado Livre
If the temporary measure is implemented, marketplaces will need to install some kind of IRS extension to ensure that the consumer pays import tax at the time of purchase. Something similar is already happening in the Amazon system, which shows the tax that will be charged when calculating shipping.
Not surprisingly, the Brazilian population should not welcome the government’s proposal. After all, many people are accustomed to buying goods from stores like Shopee and AliExpress that “take advantage” of spaces during imports to be able to practice prices well below market rates without the consumer paying taxes on the price. products.
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I’m Maurice Knox, a professional news writer with a focus on science. I work for Div Bracket. My articles cover everything from the latest scientific breakthroughs to advances in technology and medicine. I have a passion for understanding the world around us and helping people stay informed about important developments in science and beyond.