Currently exempt from federal taxes and paying 17% state tax, purchases of products and services on websites based abroad of up to US$50 will pay the future Value Added Tax (VAT).
Created by the tax reform and composed of the Contribution on Goods and Services (CBS, federal tax) and the Tax on Goods and Services (IBS, state and municipal tax), VAT will begin to be charged in 2026 and will be gradually implemented until 2033.
The rule is provided for in the complementary bill that regulates tax reform. The proposal – sent to the National Congress – establishes that any purchase of products and services through digital platforms, including foreign websites, will be subject to VAT. There will be no distinction in charging amounts.
The new VAT rules do not change the Import Tax, a tax that was not included in the tax reform and which continues to be exempt up to US$50. In theory, in addition to the VAT, goods purchased abroad may pay an import tariff that can be amended at any time by the government by decree.
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Since August last year, when the Compliant Remittance Program came into force, the Federal Revenue Service has exempted purchases of up to US$50 intended for individuals from Import Tax. States charge 17% Tax on the Circulation of Goods and Services (ICMS). In return, the websites participating in the program inform the Federal Revenue Service of the purchase, with the goods having priority in customs clearance.
At a press conference to detail the complementary bill, the extraordinary secretary for Tax Reform at the Ministry of Finance, Bernard Appy, said that companies based abroad will have to register to collect CBS and IBS.
According to Revenue auditor Roni Petterson Brito, who participated in the interview and helped in the preparation of the complementary bill, registration will be simplified, as occurs in other countries.
Appy clarified that the digital platform will be responsible for payment. Thus, if a foreign company sells a software (computer program) to a company in Brazil, the company outside the country will have to pay CBS and IBS. If the foreign company does not collect the tax, the buyer in Brazil will have to pay it directly, adding the rate to the sales price of the merchandise.
