Digital platform will be responsible for paying the tax. Thus, if a foreign company sells software to a company in Brazil, it will be obliged to pay the new tax. If the platform does not collect the payment, the Brazilian buyer must pay the tax, adding the rate to the sales price of the merchandise, according to the extraordinary secretary for Tax Reform at the Ministry of Finance, Bernard Appy.
Foreign companies will have to register to collect the new tax. Registration will be simplified, following practices adopted in other countries, Appy said at a press conference to detail the project that regulates tax reform, delivered on April 24 by the government to Congress.
VAT will replace five current taxes, including ICMS, to which international purchases are currently subject. The other four taxes replaced are PIS, Cofins, IPI and ISS. The new tax will be dual: the Contribution on Goods and Services (federal tax) and the Tax on Goods and Services (state and municipal tax) will be created. VAT will begin to be charged in 2026 and will be gradually implemented until 2033.
Import Tax Exemption
The new VAT rules do not affect Import Tax. In other words, purchases up to US$50 will continue to be exempt from this tax, as defined in the Conformal Shipping program. For purchases above this value, the import tax is 60%.
The import tax exemption for these purchases is criticized by national retailers. Businesspeople in the sector complain about unfair competition with foreign websites and have mobilized to end the exemption.
