Tax Reform and Imports of Small-Value Goods via Digital Platforms: What Lies Ahead?
The tax reform approved by Constitutional Amendment 32/2023 has introduced significant changes to the tax treatment of imports of small-value goods, particularly those purchased by individuals through international digital platforms such as Shein, Shopee, and AliExpress. So, what can we expect over the next few years? End of Import Tax Exemption for Purchases Up to $50 Until August 2024, international purchases valued up to $50 made by individuals were exempt from import tax. However, this exemption has been revoked under Law No. 14.902/2024, and these purchases are now taxed under the Simplified Taxation Regime (RTS), with an import tax set at 20%. Additionally, these purchases are subject to ICMS, with rates varying between 17% and 20% depending on the destination State. How Does Tax Reform Impact “Blouses”? Starting in 2026, the Contribution on Goods and Services (CBS) will be introduced, replacing PIS and COFINS. The initial CBS rate will be 0.9% and will gradually increase until it is fully implemented in 2027. Additionally, the Tax on Goods and Services (IBS), which will replace the ICMS and ISS, will be rolled out in stages beginning in 2029. According to the reform regulations outlined in Supplementary Law 214/2025, the IBS and CBS rates for imports will equal those applied to similar goods sold in the domestic market, subject to specific tax regimes (Article 71). However, only international shipments that meet the following three criteria will be exempt from IBS and CBS: i) are exempt from import tax, ii) are sent directly between individuals, and iii) are not facilitated by digital platforms (Article 94). This means that online purchases made by individuals, even those under US$ 50, will no longer be exempt and will still be subject to the CBS and, in the future, IBS. Expectations for the Coming Years Based on the transition model for the new tax system, ICMS will continue to be applied to import operations until 2032. This means that for several more years, ICMS will coexist with the new taxes, which could signal the end of the era of exempt “blouses” and more economical consumption alternatives. However, for both state and federal governments, increasing taxes on small international purchases could help protect local businesses and boost revenue.