Government wants to eliminate tax exemption on imports

In the quest for increased revenue, the federal government will end the tax exemption on international remittances with a value of less than US$ 50 (about R$ 250).

Although it is only valid for shipments between individuals, the benefit would be being misused to evade taxes in the trade of retailers, mainly Chinese, carried out through digital platforms such as Shopee, Shein and AliExpress.

Last week, the Minister of Finance, Fernando Haddad, said that combating this type of fraud would allow raising revenues by up to R$8 billion per year.

“The whole problem is smuggling. E-commerce is good for the country, it stimulates competition, what we have to curb is smuggling, because it is doing a lot of damage to Brazilian companies that pay taxes,” he said.

The government is now preparing a provisional measure (MP) to end the distinction in the treatment of remittances made by legal entities and individuals.

A normative instruction from the Federal Revenue Service, published in December 2022, has already established that, as of July 1st, the Post Office will have to forward to the Tax Authorities, two days before the arrival of all postal shipments in Brazil, a form with 37 information on the buyer, such as CPF, purchase amount and description of the content. Currently, this exchange of information is done by sampling.

“What is being proposed are tools to enable the effective inspection and requirement of the tax through risk management: mandatory complete and advance import declarations (full identification of the exporter and importer) with a fine in case of under-invoicing or data incomplete/incorrect”, declared the Revenue, in a note.

In the statement, the agency highlighted that there has never been a tax exemption for online purchases below US$50. says snippet.

According to the text, remittances with a relevant value made by individuals today are “absolutely inexpressive”, and the distinction in the treatment of remittances made by legal and natural persons would only serve for “widespread fraud in remittances”.

For the Revenue, with the new measures, consumers will benefit. “With the advance declaration, the goods can arrive in Brazil already cleared (green channel), and can go directly to the consumer. The Revenue will focus its inspection on higher risk shipments, in which our risk management systems, fed by advance declarations, point to risk.”