Brazilian Government Targets Companies Like Shein and Shopee and Will End Import Exemptions of up to US$ 50
A measure will be implemented to end import exemptions of up to US$ 50 in order to combat tax evasion by e-commerce companies
The Luiz Inácio Lula da Silva (PT) government will put an end to the import tax exemption for orders of up to US$ 50 (R$ 250) sent by individuals and also destined for individuals. The purpose of the measure is to bar the use of this exemption by e-commerce companies that defraud the import process and improperly place the names of individuals as senders.
According to the Federal Revenue Service, the rules did not allow the exemption for purchases by companies and, therefore, what is being sought is the effective payment of the due tax. The zero rates for shipments actually sent by individuals and which will be taxed from now on served an insignificant universe, according to the Revenue Service, and only served to facilitate generalized fraud. "Digital smuggling" is in the sights of the Finance cabinet, which estimates to raise up to R$ 8 billion with the taxation of international retail platforms that circumvent the rules of the Tax Authorities.
Although the government does not mention companies by name, Brazilian businesses accuse Asian companies of using the expedient. In recent years, retailers such as AliExpress, Shein, and Shopee have grabbed a significant share of the Brazilian market with cheaper products and have been under the radar of Brazilian competitors.
With the aim of strengthening the fight against tax evasion and making the inspection of e-commerce more effective, the Revenue Service foresees the obligation of issuing complete and advanced import declarations, identifying the exporter and importer, with the possibility of a fine in case of under-invoicing or data incomplete or incorrect. It also plans to terminate the distinction in the treatment of shipments sent by legal and natural persons.
Translated by Cassy Dias