In December 2022, Brazilians spent around US$1.7 billion on small-value purchases abroad.

Data from the Central Bank show a growth trajectory in purchases of small value abroad. In January 2013, there were five million dollars in purchases. Five years later, in January 2018, the value jumped to 169 million dollars. This year, Brazilians spent 700 million dollars in the same period.

The record for this historical series took place in December 2022, when around 1.7 billion dollars were spent on small-value purchases abroad. The growing segment calls the attention of consumers in search of more advantageous prices and Brazilian merchants, who consider the competition unfair.

However, the government wants to change the taxation rules. In March of this year, the Federal Revenue promised to increase rates for purchases abroad. The government backed down after the bad repercussions. "We cannot accept that people are selling things in Brazil without paying income tax", said President Lula.

It was up to the Minister of Finance, Fernando Haddad, to resolve the impasse. "We know that there are companies that practice this unfair competition, harming all other companies. The president asked us to try to solve this administratively", he said.
Now, in August, new rules will apply. Today, whoever is in Brazil and buys on websites abroad has to pay import tax. The rate is high and exists on the grounds of protecting national trade, but many companies circumvent this rule, as explained by tax lawyer Paulo Henrique Studart.

"There are two taxes that affect the import of purchases, the import tax and the ICMS, which is the State tax. There is currently a provision in the legislation for exemption from these two taxes in the case of purchases of up to 50 dollars, provided that these purchases are between individuals, that is, there is a remittance from abroad by an individual to another individual. So from this perspective, there would be no taxation. Amounts that exceed 50 dollars, or remittances made by legal entities, according to current legislation, should be taxed. What often happens is the fact that there is a simulation of a sale by individuals, but which, in fact, are large business groups that make remittances taking advantage of this loophole in Brazilian legislation, using a fraudulent expedient".

To attract companies to regularity and avoid tax evasion, the government offers the conditions for legal entities to also be able to make remittances with differentiated taxation. Thus, there will not be a total exemption, but there will be a partial exemption, especially with regard to the most onerous tax, which is the import tax, which currently has a rate of 60%. As these companies adhere to a federal government program, remittances worth up to 50 dollars will not be subject to import tax.

Thus, there will be taxation as a single rate of 17% for ICMS. This will enable these companies to settle the current situation, and will allow the consumer to purchase abroad, already with the predictability of taxation. Even so, many merchants find the special condition offered by companies from abroad to be unfair.

"There is no reason, then, a product sold outside the country to pay less tax than domestic companies pay", says a businessman. "Buying on the internet to be taxed as we in commerce are taxed, would be ideal", says another.

Source: www.itatiaia.com.br