Import duties for online shopping
In Brazil, there isn't a specific legislation regarding the import of products bought in online shops. However, we will explain the taxes and rules that orient this procedure in this article.
Due to the large amount of taxes that drives up the prices of imported products sold by national retailers, buying directly from foreign stores via internet has become a viable option for many Brazilians.
The Brazilian law is still taking baby steps towards regulating internet comercial activities and providing specific rules that fit in this particular vehicle. So, the procedure of importing products bought online is regulated by the very same law as importing from physical stores, which is the Regime de Tributação Simplificada or RTS. This rule is also known as Importação Simplicada (Simplified Import).
Regime de Tributação Simplificada
As the name indicates, the Regime de Tributação Simplificada is very simple to understand. Only purchases of up to USD 3000 fit in this law, that is why this procedure is more recommended to individuals not companies. The rate charged on Import Tax is 60% of the value of the goods contained in the invoice, plus costs of transport and insurance on the transport, if not included in the price of the commodity.
Many websites that sell foreign products have prepared to attend the Brazilian consumers, and have already installed programs that indicate how much they will pay on taxes when withdrawing the goods in Brazil. Check an example of this calculation on a purchase made in Amazon.com. The product purchased was a Kindle costing originally USD 89.
When the order’s value is up to USD 500 and it is brought by Correios (Brazilian official post office), the tax will be paid at the time of withdrawal of the goods without any customs formalities. The Federal Revenue Service takes from 20 to 25 days to release the goods to the consumers.
In cases of products taxed, the buyer receives a notification from the Federal Revenue Service, asking him to get the product in a given postal address. To finally get their hands on the purchase, they need to bring cash and documents and pay the taxes due. If the consumer does not want to pay the taxes due upon the withdrawal of the product in the post office, the goods will be retained, going to auction afterwards.
If the value of the shipment exceeds USD 500, the buyer must present the Declaração Simplificada de Importação or DSI (Simplified Import Declaration). The Federal Revenue Service takes from 20 to 25 days to release the goods to the consumers.
Remittances totaling up to $ 50 (with shipping) are exempt from Import Tax, provided they are transported by the postal service, and that the sender and recipient are individuals. If the product comes from a company in another country, the consumer will have to pay the taxes due.
Books, newspapers and magazines are exempted from paying Import Tax. Drugs are also exempted, but upon the release of the drug, the Ministry of Health requires the submission of the medical prescription. Alcoholic and tobacco products do not fit in the RTS regulation.
In international express delivery (courier), it is the seller who is responsible to collect the taxes to the Federal Revenue Service and then charge the consumer. The goods will be delivered to his home after the payment.
It is also important to consider that some credit institutions charges fees on this type of purchase that will vary accordingly to the bank and the account holder.
For further information about Regime de Tributação Simplificada check our other guide here
Importing online also involves ICMS
In order to provide equal treatment to both national and foreign products, the Brazilian law foresees the collection of ICMS on imported products, the so-called ICMS de Importação (Import ICMS). The rates vary from state to state and from product to product. For further information about ICMS check our guider here and here.