How much will an international purchase cost after the Tax Reform? See estimate

The website TecMundo published a report highlighting the impact of the tax reform on purchases made on foreign e-commerce sites. The report highlighted the changes that will be implemented and the differences in relation to the current taxation model. Dr. Marcos Correia Piqueira Maia, partner at Maneira Advogados, was interviewed to clarify the topic.

How much will an international purchase cost after the Tax Reform? See estimate

Maura Martins

With the Tax Reform, international purchases made in popular stores, such as Shein, Shopee and AliExpress, will no longer be charged by ICMS and will instead be charged by the Value Added Tax (VAT). This information was revealed last week at a press conference given by Bernard Appy, who is extraordinary secretary for tax reform at the Ministry of Finance.

The charge will apply to “dual VAT”, which attributes to purchases made abroad the Goods and Services Tax (IBS) and the Contribution on Goods and Services (CBS). Check out how this should work below.

CHANGES DETERMINED BY TAX REFORM

The change in taxation is due to the end of the Tax on Circulation of Goods and Provision of Services (ICMS), under state jurisdiction. This change should cause the value of the VAT rate to rise to around 26.5% (the current ICMS value is around 17%).

The novelty, which ends up promoting an increase in taxation, has the support of commerce and retail entities that aim to protect the national sector. In a statement given in a note to CNN, the National Confederation of Commerce in Goods, Services and Tourism (CNC) stated that “this measure is crucial to guarantee the competitiveness of Brazilian trade and protect millions of jobs in our country”.

The main reason, according to the CNC, is to bring more competitive equality to national trade in relation to abroad. This is because the current taxation, according to the agency, is unequal and generates negative impacts on the sector of up to 13% of current revenue.

NEW TAXES THAT WILL BE CHARGED

With the consolidation of the Tax Reform (which will begin to be applied from 2026 and will be consolidated until 2033), all purchases made on websites based abroad will be charged by dual VAT. In other words, all purchases will have to pay a state and a federal tax.

Currently, international stores included in the Remessa Compliance program, which grants exemption from federal taxes for purchases coming from abroad, are exempt from federal taxes if the products are below US$50 (about R$ 253 at the current price).

Three tax experts interviewed by TecMundo — Marcos Correia Piqueira Maia, tax lawyer, partner at Maneira Advogados; and Rafael Zorzi and Aleksandros Markopoulou, lawyers specializing in Tax Law at the firm Ayres Ribeiro Advogados (ARA) — explain how the new charges will occur following the Tax Reform.

The new tax legislation will put an end not only to ICMS, but also to other taxes on consumption, such as PIS, COFINS, ISS and IPI. "They will be combined into two taxes with identical characteristics: the CBS and the IBS. The main difference between these taxes is that the first belongs to the Federal Union, while the second belongs to the States and Municipalities", says Marcos Maia.

HOW MUCH WILL YOU START PAYING FOR INTERNATIONAL SHOPPING?

According to lawyers, taxation will probably vary between products below and above US$50. With the full effect of the tax reform, any purchase of items coming from outside the country will have to pay the 26.5% VAT-Dual tax.

Maia comments that it is not possible to know whether products below US$50 will continue to be exempt from Import Tax (the rate of which is 60%). Despite this, he stresses that there is “no indication that the rule will be repealed”.

Zorzi and Markopoulou go in the opposite direction to their colleague, saying that it is possible for the government to end the “benefit” of not charging Import Tax on purchases below US$50.

Based on these assumptions, let's look below at practical examples of what the new taxes might look like:

Products up to US$50

A product that costs R$100, for example, should be charged at the VAT-Dual rate estimated at 26.5%, with the taxes charged being R$26.50. The purchase would therefore total: R$ 126.50.

Now, if the Import Tax is resumed for purchases below US$50, the value could be much higher. Taking the current rate of 60% of the Import Tax plus the 26.5% of the future VAT-Dual, a purchase of R$100 can reach the value of R$202.40. The purchase price could double because, among other things, taxes also cover the cost of transport and insurance, warn Zorzi and Markopoulou.

Products over US$50

A piece of clothing that costs R$1,000, for example, will also have an estimated VAT-Dual tax of 26.5%, which would generate a tax of R$265, reaching R$1,265. However, this purchase will also be subject to Import Tax, which may vary depending on the product.

In the case of a clothing item, for example, the Import Tax could be 35%, according to Maia, adding another R$350 to the transaction. The final value, therefore, adding VAT-Dual and Import Tax, could reach R$1,615, increasing the original value of the item of clothing by more than 50%.

TAXES WILL INCREASE

Lawyers predict that there will already be an impact on purchases on international websites from 2026, with the introduction of a “test” rate for IBS and CBS. However, the biggest impacts will come from 2027.

And tax lawyers Marcos Correia Piqueira Maia, Rafael Zorzi and Aleksandros Markopoulou are unanimous in stating that Tax Reform will increase taxation for customers who like to make international purchases on sites like Shein, Shopee and AliExpress.

“From 2027, with the entry into force of the CBS, taxpayers will already feel the difference in imports, especially those goods worth less than US$50”, highlights Maia.

Zorzi and Markopoulou remember that even if the Import Tax continues not to be applied to purchases below US$50, Brazilians will see at least the current 17% ICMS rising to 26.5% for VAT-Dual. “This will considerably increase taxation”, they conclude.

https://www.tecmundo.com.br/mercado/282613-custar-compra-internacional-reforma-tributaria-veja-estimativa.htm