HomeeCommerce NewsBrazil plans to levy 'digital tax' on some E-Commerce shipments

Brazil plans to levy ‘digital tax’ on some E-Commerce shipments

Recently, the Brazilian President said that he dreams of a day every night when the US Dollar will not be the dominant currency in the world and every country in the world will not be trading in the USD and rather in the currency they prefer. While he is not wrong, the reason why people use USD is because it is easier to exchange and a standard one but we do believe that the global currency will also change. Talking about Brazil, a new report has come up and this one is regarding e-commerce and companies that import products into the country.

It is reported that Brazil is planning to levy a “digital tax” on e-commerce brands that import product from outside the country and sell it inside the country. This tax is planned after Brazil said that they are not going forward with their decision to tax individual-to-individual shipments of up to $50. Brazil’s Finance Minister said, “We will follow the example of developed nations, a digital tax,”. “Consumers will be exempt from any tax collection when they make the purchase, companies will collect it without passing on any additional cost.” A source close to Brazilian Government said, “We are not going to create or increase taxes, we are just going to make easier electronic collection possible,”

It is worth noting that International Shipments arriving in Brazil are already taxed at 60% when they enter the company. However, there are companies that took advantage of a loophole in the Brazilian laws where individual-to-individual shipments are not charged at the same rate. To benefit from tax exemption, some Asian e-commerce companies were known to be sending their shipments as if they were sent by an individual and not a company.

Now, the matter has come to light of the Brazilian Government and it is for that reason that the administration is going to levy a “digital tax” on such shipments. Due to this tax decision, Shein has announced that they will nationalize 85% of Shein’s Brazilian sales by implementing local production facilities and have already pledged to invest 750 million reais equivalent to US$149 million.

Alf Alferez
Alf Alferez
Dedicated writer with a strong track record of developing customer loyalty and managing general office operations. Enjoy being a part of a company where my skills and creative ideas will benefit the overall productivity of the organization. I have a strong desire to work in helping make the world a better place. Please reach out to me on alf@ecommercenext.org

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