On the first of August 2024, the taxation of international purchases up to fifty dollars has come into effect. Before, purchases up to this amount did not have fees, in addition to the freight and the ICMS. At the end of June, President Lula signed the law that created a 20% tax on international purchases of up to $50,00. This applies to all types of products, except for medications.
This measure aims to correct an imbalance that existed between domestic and foreign sellers, especially in lower-priced products.Brazilian retail is subject to taxes and fees that make it difficult for foreign sellers – mainly Asian online stores – practiced much more competitive prices, even with shipping and ICMS. In this way, the volume of purchases on these international sites had been very high, what in a way harms the national industry and retail. According to the Retail Development Institute, (IDV), national retailers are subject to a tax burden between 70 and 110%.
But what changes for consumers, in this first moment, , is that buyers now need to be much more attentive to the prices charged on foreign websites. This is because prices may not be as attractive; thus buying from a Brazilian e-commerce, or even in a physical store, it can be cheaper. The main rule now is to research well, especially on those products above R$ 100,00 (around US$ 20,00). Many consumers accessed Asian marketplaces directly in the first step of the buying journey, the research, without even considering local suppliers. Something understandable, since the prices in these stores would certainly be cheaper. Now, this step of the purchase also needs to consider the Brazilian retail.
At this moment, you may be wondering: are there good reasons to implement this tax? A question whose answer is not simple. However, let's look at four important reasons for taxing imports.
Improves national competitivenessit is good to remember that most of the products affected by the new tax are simple items, that can be found in any national store. Therefore, avoids unfair competition, improving the internal economy, enabling more jobs and economic development.
Combating tax evasionwithout taxation on products up to 50 dollars, many individuals in Brazil, they bought in large quantities and in fractional orders, on foreign sites, to escape the import tax for purchases over $50,00, that has always existed. However, they sold here through legal entities. That is to say, tax evasion. The approved measure discourages this practice. To get an idea, the Federal Revenue informed, recently, that a single person had sent more than 16 million international packages to Brazil.
Encourages foreign investmentBrazil is not just any country, in economic terms. We are the sixth largest economy in the world and investments here are always considered by international companies. Foreign marketplaces, therefore, they would not want to lose a slice already consolidated in our market. So, partnerships and investments may come onto the radar of these organizations. An example is the partnership established between Magalu and AliExpress in June 2024, that provides for an exchange of products between the two retailers.
Increases revenuethe federal government has not yet disclosed the expectation for the next revenue with the implementation of the end of the exemption for purchases up to 50 dollars. But the Ministry of Finance reported that this projection will be released only in September. In any case, it is consensus that federal revenue will increase. In times of fiscal rigor and government investment needs, the new tax is important.
