As of the last 1st of August, a new rule came into force in the Brazil for international purchases up to US$50. The change impacts purchases made over the internet by individuals at companies located outside the country and aims to regularize this constantly growing trade in the country
The online retail giant Shein confirmed its adherence to the program and emphasized that it is working to adapt to the changes and comply with all requirements.
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Meanwhile, the alibaba, controller of aliexpress, showed enthusiasm for the program and committed to collaborating with the Brazilian authorities to boost the development of the digital economy in the country. On the other hand, the platform Shopee has not yet commented on the matter.
The new rule will exempt from Import Tax purchases of up to US$ 50 made in companies that adhere to the Federal Revenue compliance program.
To qualify for the exemption, companies will need to provide more information about the sale, seller, and buyer. Those who do not adhere to the program will continue to be subject to the tax, which is 60% of the purchase price.
(Image: Disclosure)
According to the government, the recent rule has as one of its objectives the fight against fraud, since, allegedly, some companies have declared incorrect amounts to avoid taxation. A Unityestimated to give up around BRL 35 billion in revenue by 2027 with the exemption from Import Tax.
The new rules do not affect the sending of items with values up to US$ 50, regardless of the involvement of individuals or legal entities in Brazil, keeping this transaction tax-free.
In addition, the government argues that the measure aims to balance competition between national retail and international e-commerce.
With the implementation of the Federal Revenue's compliance program, the government hopes to speed up the release of orders, allowing packages to be sent automatically upon arrival in the country.
Despite the effort, the new rules have generated controversy in the Brazilian retail sector. The Institute for Retail Development (IDV) criticized the exemption for shopping below US$ 50, stating that taxes on domestic products remain high.
This could lead Brazilian companies to transfer their operations abroad and become importers only. The IDV warns that this could make the business environment in Brazilian retail unsustainable.
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