The growth of e-commerce in Brazil has been driven by changes in consumer behavior and advancements in digital technologies. According to data from the Brazilian Association of Electronic Commerce (ABComm), the sector generated R$ 185.7 billion in 2023, a 9.5% growth compared to the previous year. However, this progress has also brought significant tax challenges for digital entrepreneurs, who must deal with complex legislation, legal uncertainty, and high costs to maintain tax compliance.
According to Jhonny Martins, vice president of SERAC, a hub for corporate solutions involving accounting, legal, educational, and technology areas, the sector’s tax burden is one of the main obstacles to the sustainable growth of e-commerce. ‘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 small online stores to large marketplaces. Among the main challenges are the taxation of digital products, which includes streaming services, online courses, and software, facing different rules for ISS (Tax on Services) and ICMS (Tax on the Circulation of Goods and Services), which can lead to double taxation and high costs.
The issuance of electronic invoices is also a requirement for each transaction. ‘Therefore, companies must adopt automated solutions to avoid errors and ensure compliance,’ warns Jhonny.
Implementing tax substitution and differential tax rates (DIFAL), i.e., correctly calculating state taxes on sales to consumers in other states, is one of the biggest challenges for e-commerce, especially for small and medium-sized businesses, the expert points out. ‘Compliance with state and federal tax declarations can consume time and resources, hindering business scalability,’ he notes.
Beyond taxation, e-commerce businesses must ensure their practices comply with the LGPD (General Data Protection Law), protecting customer data and avoiding penalties.
For Jhonny Martins, the lack of a tax reform to simplify sector rules makes the business environment even more challenging. ‘Today, a small business owner who wants to sell online must deal with different state taxations, tax substitution regimes, and constantly changing rules. This creates legal uncertainty and high operational costs,’ he explains.
How to ensure tax compliance in e-commerce
Given this scenario, Martins recommends that digital entrepreneurs adopt strategies to ensure tax regularity and avoid penalties. Some best practices include:
- Choosing the appropriate tax regime: Opting between Simples Nacional, Lucro Presumido, or Lucro Real based on the company’s revenue and activity can reduce tax costs.
- Investing in tax technology: Tax automation software helps with issuing invoices, calculating taxes, and tracking tax obligations.
- Monitoring changes in legislation: Staying updated on new rules and seeking specialized advice are essential to avoid penalties.
- Implementing good tax governance practices: Creating internal processes for tax management improves transparency and reduces legal risks.
The future of e-commerce and the need for tax simplification
With the advancement of digital, 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 simplified and predictable tax system would allow the e-commerce sector to grow even further, generating jobs and strengthening the economy,’ he highlights.
While structural changes have yet to happen, entrepreneurs must adapt, invest in technology, and adopt good tax compliance practices to ensure the sustainability and growth of their digital businesses.
