Brazilian states approve tax on online purchases

Brazilian state governments have reached an agreement to implement a 17% tax on electronic purchases from foreign companies, such as Shein and Shopee.

The agreement allows for the collection of ICMS, a state tax.

The tax collection will be carried out by the Federal Revenue Service and the Import Tax, which can be part of the Simplified Taxation System.

The implementation of the tax collection is expected to take at least one more month, with the start of taxation anticipated for the end of July 2023.

Companies have the option to join the program voluntarily. Participating companies will have their imported products streamlined through a green channel, avoiding lengthy customs procedures that could delay product delivery.

The agreement was signed during the Comsefaz meeting held on Thursday, following discussions that took place on Tuesday.

The São Paulo government had requested additional time to analyze the issue, but an agreement was ultimately reached at the Thursday meeting.

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