The growth of e-commerce in Brazil has been driven by changes in consumer behavior and the advancement of digital technologies. According to data from the Brazilian Association of E-commerce (ABComm), the sector billed R$ 185.7 billion in 2023, a growth of 9.5% compared to the previous year. However, this advancement has also brought significant tax challenges for digital entrepreneurs, who need to deal with complex legislation, legal uncertainty, and high costs to maintain fiscal compliance.
According to Jhonny Martins, vice president of SERAC, a hub of corporate solutions involving accounting, legal, educational, and technological areas, the tax burden on the sector is one of the main obstacles to sustainable e-commerce growth. “E-commerce operates in a dynamic environment but still faces bureaucratic barriers that hinder competitiveness. The lack of standardization in interstate taxation and frequent changes in tax rules create uncertainty for entrepreneurs,” he states.
The main tax challenges of e-commerce are marked by a series of complexities that impact from small online stores to large marketplaces. Among the main challenges, there is the taxation of digital products, which includes streaming services, online courses, and software that face different rules of ISS (Tax on Services) and ICMS (Tax on Circulation of Goods and Services), which can lead to double taxation and high costs.
The issuance of electronic invoices is also an obligation for each transaction. ‘Therefore, it is necessary for companies to adopt automated solutions to avoid failures and ensure compliance,’ warns Jhonny.
Performing tax substitution and differential rate calculation (DIFAL), meaning the correct calculation of state taxes on sales to consumers from other states, is one of the biggest challenges of e-commerce, especially for small and medium-sized entrepreneurs, points out the specialist. ‘Compliance with state and federal tax declarations can consume time and resources, making business scalability difficult,’ points out.
In addition to taxation, e-commerce businesses need to ensure that their practices are aligned with LGPD, protecting customer data and avoiding penalties.
According to Jhonny Martin, the lack of a tax reform that simplifies the sector’s rules makes the business environment even more challenging. ‘Today, a small business owner who wants to sell online needs to deal with different state taxes, tax substitution regimes, and constantly changing rules. This creates legal uncertainty and high operational costs,’ explains.
How to ensure fiscal compliance in e-commerce
Given this scenario, Martins recommends that digital entrepreneurs adopt strategies to ensure tax regularity and avoid fines. Some of the best practices include:
- Choosing the appropriate tax regime: Choosing between Simples Nacional, Lucro Presumido, or Lucro Real according to the company’s revenue and activity can reduce tax costs.
- Investing in Tax Technology: Tax automation software assists in issuing invoices, calculating taxes, and monitoring tax obligations.
- Keeping Up with Legislative Changes: Staying updated on new rules and seeking specialized advice are essential to avoid penalties.
- Implementing Good Tax Governance Practices: Creating internal processes for fiscal management improves transparency and reduces legal risks.
The Future of E-commerce and the Need for Tax Simplification
With the advancement of digitalization, the need for a more efficient tax system becomes urgent. The tax reform, currently under discussion, promises to reduce bureaucracy and bring more clarity to entrepreneurs. “A more streamlined and predictable tax system would allow the e-commerce sector to grow even more, creating jobs and strengthening the economy,” emphasizes.
Until structural changes take place, it is up to entrepreneurs to adapt, invest in technology, and adopt good tax compliance practices to ensure the sustainability and growth of the digital business.
