On August 1, 2024, the taxation of international purchases of up to fifty dollars came into effect. Previously, purchases up to this amount did not include fees, besides shipping and ICMS. At the end of June, President Lula sanctioned the law that created a 20% tax on international purchases of up to US$ 50. This applies to all types of products, except 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 cause foreign sellers—mainly Asian online stores—to offer much more competitive prices, even with shipping and ICMS. In this way, the volume of purchases on these international sites has been very high, which 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 at this first moment is that buyers now need to be much more attentive to the prices practiced on foreign websites. This is because prices may become less attractive; thus, buying from a Brazilian e-commerce or even a physical store may be cheaper. The main rule now is to research thoroughly, especially for those products above R$ 100.00 (about US$ 20.00). Many consumers directly accessed Asian marketplaces in the first step of the purchasing journey, the research phase, without even considering local suppliers. Something understandable, since certainly the prices in these stores would be cheaper. Now, this purchasing step also needs to consider the Brazilian retail sector.
At this moment, you might 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, which can be found in any national store. Therefore, it avoids unfair competition, improves the internal economy, and enables more employment and economic development.
Combating tax evasionWithout taxation on products up to $50, many individuals in Brazil purchased in large quantities and in split orders from foreign websites to avoid the import duty for purchases over $50.00, which has always existed. However, they sold here through legal entities. In other words, tax evasion. The approved measure discourages this practice. To give an idea, the Federal Revenue recently reported that a single person had sent more than 16 million international packages to Brazil.
Encourages foreign investmentBrazil is not just any country, economically speaking. We are the sixth largest economy in the world, and investments here are always considered by international companies. Foreign marketplaces, therefore, would not want to lose a already established share in our market. So, partnerships and investments can come onto the radar of these organizations. An example is the partnership established between Magalu and AliExpress in June 2024, which foresees an exchange of products between the two retailers.
Increases revenueThe federal government has not yet disclosed the expected revenue from the implementation of the end of exemption for purchases up to 50 dollars. But the Ministry of Finance stated that this projection will only be released in September. In any case, it is consensus that federal revenue will increase. In times of fiscal austerity and government investment needs, the new tax is important.
