‘Tax on blouses’: international purchases will begin to be taxed in August

‘Tax on blouses’: international purchases will begin to be taxed in August

Import tax charges make consumers race against time to purchase products before they become more expensive due to taxation

By Caroline Nunes— Rio de Janeiro

August 1st this year will be a watershed for consumers who like to shop on international websites, such as Shein and Shopee. On that date, the so-called “blouse tax” will come into force, which is the charge of 20% Import Tax on products purchased by individuals on platforms abroad, with a value of up to US$50 (previously exempt).

Currently, the state Tax on Circulation of Goods and Services (ICMS) is already charged on purchases made on these websites, which is levied on the total amount paid. This tax is charged “inside”, that is, it is included in the calculation basis of the tax itself.

When the new rate comes into force, the consumer will have to pay the Import Tax of 20%, in addition to the ICMS — which will consider the value of the product already adding the “blouse tax” in its calculation. This way, if a product costs R$40, the customer will pay R$57.83 (see the simulation below).

The idea is that, at the time of purchase, the consumer already knows how much they will have to pay to be able to import the product, regardless of the value.

RACING AGAINST TIME

The imminent increase in the price paid on an international website has led some consumers to race against time to make purchases before the new taxation. A user identified as Loma wrote on X that she was in need of clothes and would go out “buying a bunch before the taxes start.”

She is not the only one who supports the strategy. On social media, there are several reports of consumers who are making the “last purchase before taxation”. Alex, another X user, said he was “saying goodbye to Shopee before the new tax law starts.” Lív advised other internet users: “Take the opportunity to buy before the taxes start, people.”

The “frustration” due to the start of taxation may be even greater for consumers who purchase on websites that are not part of the Federal Revenue Remessa Compliance program, says Marcos Maia, partner specializing in Tax Law at Maneira Advogados.

— If there is no registration in the Compliant Shipping program, an increased Import Tax rate of 60% will be applied, even for purchases up to US$50 — it says.

The lawyer highlights that it is important to consider the cost of shipping and insurance charged by the platform within the limit of US$50. Furthermore, he adds that, for purchases whose value exceeds US$50, “the Import Tax will be 60%, with a discount of US$20 applicable if the platform is registered with Remessa Conform”.

TEN COMPANIES HAVE CERTIFICATION

Companies certified in the Conform Remittance Program can receive tax and customs benefits for goods sent to Brazil via international shipments. On the other hand, they must follow the compliance criteria established by the Federal Revenue Service.

From August onwards, companies participating in the program will have a 20% rate for Import Tax — today, this rate is reset to zero for those who are certified. Those who do not join the program will continue to be taxed at 60% of the price of the merchandise, regardless of the value. According to calculations by the Federal Revenue, 18 million international postal shipments arrive in Brazil monthly.

Currently, ten companies have already received the certificate from the Federal Revenue Service. They are: 3Cliques, AliExpress, Amazon, Magazine Luiza, Mercado Livre, Puritan, Shein, Shopee, Sinerlog Store and Temu.

The companies Wish, US Closer, Tiendamia, Muifabrica, LifeOne, IHerb, Ficaclub, Cronosco, Cellshop and Addmall are awaiting certification. According to the Tax Authorities, these sites do not yet have “requirements to reduce the Import Tax rate”.

SALE REGISTRATION DATE IS APPLIED

For consumers who are rushing to make purchases before August 1st, Maia highlights that the incidence of Import Tax will depend on the date on which the online platform registers the Shipping Import Declaration (DIR).

The DIR is a means of declaring international orders, whether originating from purchases on e-commerce sites or received free of charge by the recipient, to the Federal Revenue Service and other inspection bodies.

— The cutoff date is August 1st. Even if the individual made the purchase before that day, the 20% Import Tax for purchases up to US$50 will apply if the DIR is registered by the platform from that cut-off date. Only if the DIR is registered beforehand will the acquirer be exempt from the 20% Import Tax — explains the Tax Law specialist.

Maia remembers that the Import Tax for purchases of up to US$50 — approved by the National Congress — will only apply to products that come from abroad. Therefore, if a consumer makes a purchase on a Brazilian marketplace hosted on a foreign platform, the “blouse tax” will not be charged, as it is a national purchase.

— If a foreign platform hosts Brazilian marketplaces, which will make national sales, there will be no incidence of the so-called “blouse tax”

PURCHASE SIMULATIONS

R$40 purchases

If the transaction is worth R$40 (below US$50), the consumer will pay the following taxes at the time of purchase:

• Import Tax (federal): the rate will be 20%, which represents R$8;
• ICMS (state): the rate will be 17%, but, as the calculation is done “inside”, and this takes into account the Import Tax, the amount payable will be R$9.83;
• Total purchase, including taxes, will be R$57.83. This means an increase of R$ 17.83, that is, an additional 44.57% on the original purchase price.

Purchases from R$ 110

If the transaction costs R$110 (still below US$50), the consumer will pay the following taxes at the time of purchase:

• Import Tax (federal): the rate will be 20%, which represents R$22;
• ICMS (state): the rate will be 17%, but, as the calculation is done “inside” and takes into account the Import Tax, the amount payable will be R$27.03;
• Total purchase, including taxes, will be R$ 159.03. This means an increase of R$49.03, that is, an additional 44.57% on the original price.

(Photo: Freepik)

https://extra.globo.com/economia/noticia/2024/07/taxa-das-blusinhas-compras-internacionais-comecarao-a-ser-taxadas-em-agosto.ghtml