Tax Changes on Amazon and Other Retailers for Imports into BrazilTax Changes on Amazon and Other Retailers for Imports into Brazil Amazon’s “Blouse Tax” Starting August 31st, Amazon will implement a 20% tax on purchases up to $50 imported into Brazil. This tax is in addition to the 17% ICMS (Industrial Goods and Services Tax) levied on such products. Other Retailers Adopting the Tax On August 27th, retailers like AliExpress and Shopee will also begin collecting the tax. Shein will implement it on September 1st. Mercado Livre and Temu have yet to announce their stance on the matter. Understanding the “Blouse Tax” The tax aims to address concerns raised by Brazilian retailers about the exemption granted to companies registered with Remessa Compliance, allowing them to import products duty-free up to $50. Change in Tax Collection As of September 1st, the following tax structure will be in place: * 20% tax + 17% ICMS for purchases up to $50 * 60% tax + 17% ICMS for purchases between $50.01 and $3,000 * Same rule applies to companies not registered with Remessa Compliance, regardless of purchase value Consumer Precautions Experts advise consumers to be mindful of the following: * Verify tax collection and diversion charges prior to purchase, as the recipient is responsible for the fees. * Avoid purchases close to the $50 threshold to prevent potential price increases. * Pay the tax to release goods and consider requesting a refund from the company if uninformed about the tax. Consequences of Unpaid Taxes Failing to pay the tax will result in the order being held by customs and potentially returned to its origin country. Consumer Recommendations * Stay informed about the new tax rates. * Review retailer information before finalizing purchases. * Be aware of potential tax charges and additional costs.
Amazon has joined other retailers in imposing a “blouse tax” on products imported into Brazil.
Starting next Wednesday (31), the company will apply a 20% tax rate on purchases up to $50.
In addition to this tax, an ICMS (Industrial Goods and Services Tax) tax of 17% is levied on the products.
Expect to pay taxes on Amazon
Photo: Hadrian / Shutterstock.com
The new law goes into effect next Thursday (the first), but Amazon has decided to move up the tax filing date due to the time between the date of purchase and the issuance of the DIR (shipping tax return).
Tax Authority The DIR is used to determine the exact date of entry of the product into Brazil and the dollar exchange rate that will be applied to each purchase. This period can vary from three to fifteen days, depending on the company responsible for shipping. Therefore, it is important to know: purchases made at the end of June may already include the new tax.
Other retailers that accept shipping
From Saturday 27, the tax will also be levied on purchases from retailers such as AliExpress and Shopee, in addition to Amazon.
Shein will implement the tax from next Thursday, the 1st. Mercado Livre and Temu were consulted on the possibility of implementing the levy, but had not yet responded at the time of publishing this article.
Understanding what ‘blouse fees’ are
In June, the Chamber of Deputies and the Senate approved the import tax, which was approved by President Luiz Inacio Lula da Silva later that month.
This measure comes in response to a request from Brazilian retailers, who expressed their dissatisfaction with the exemption granted to companies registered with Remessa Compliance.
Companies registered in Remesa Conform
According to the IRS, there are currently 11 companies participating in the program and they are allowed to import products up to $50 duty-free through August 1. Only the ICMS tax, the 17% state sales tax, applies. Companies registered with Remessa Compliance include:
Change in tax collection
Starting Thursday (the first), there will be a 20% tax on international purchases up to $50, on top of the 17% ICMS tax.
For purchases between USD 50.01 and USD 3,000, the pre-Remessa legislation still applies, resulting in a 60% tax plus ICMS fee. This rule also applies to companies not registered in the program, regardless of the purchase value.
Be careful when shopping
Experts advise consumers to pay extra attention to the following in the final days before the new law comes into effect:
“The consumer must be informed in advance of the tax collection and diversion, because the value may change and the recipient of the order is the one who pays. In other words, the tax is collected from the one who bought the product. Therefore, it is risky to make a purchase close to this $50 threshold, because the value can increase significantly,” says Patricia Dias, Technical Advisor for Legal Affairs at Procon-SP.
Consumer recommendations
If the tax is not paid, the order will be held by the tax authorities and may be returned to the country of origin.
“The recommendation is that the consumer pays the amount to release the goods and can then request a refund from the company, if he has not been informed of the possibility of increasing the amount due by the tax,” warns Roberto Pfeiffer, professor of law at the University of the South Pacific and specialist in consumer law.
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With the new rule, it is essential that consumers are aware of the new tax rates on their international purchases to avoid unpleasant surprises. Always check the information provided by the retailer before finalizing your purchases.
Photo: Bordon Elia / Shutterstock.com
