Purchases on foreign websites must be subject to a new tax with the implementation of tax reform

From 2026 onwards, purchases of products and services on foreign websites based abroad will be subject to the Value Added Tax (VAT), this includes purchases of up to US$50 (R$257, at current prices). This tax, created by tax reform, will be composed of the Contribution on Goods and Services (CBS) and the Tax on Goods and Services (IBS), being implemented gradually until 2033. The complementary bill that regulates the tax reform establishes that all purchases made through digital platforms , including foreign websites, will be subject to VAT, without distinguishing the amounts charged. It is worth noting that the new VAT rules do not affect Import Tax, which remains exempt up to US$50.

Since August last year, the Compliant Shipping Program has exempted purchases of up to US$50 intended for individuals from Import Tax, with states charging 17% ICMS. Companies based abroad that make sales to Brazil will have to register to collect CBS and IBS, according to the extraordinary secretary for Tax Reform at the Ministry of Finance, Bernard Appy. Registration for tax collection will be simplified, following the model adopted in other countries. The digital platform will be responsible for paying taxes, ensuring that foreign companies comply with their tax obligations. If the foreign company does not collect the tax, the buyer in Brazil will have to pay directly, adding the tax rate to the price of the merchandise.

*Report produced with the help of AI