Several tax issues have been gaining prominence in the media in recent times, in parallel with the discussion about tax reform and its regulation. One of them – which emerged in 2023 – refers to extending the Import Tax exemption applicable to import transactions made by Brazilian individuals (originating from invididuals abroad) to those made through international e-commerce platforms.

With the institution of the Remessa Conforme Program, in June 2023, this exemption for transactions between individuals was also allowed to international purchases made through e-commerce platform companies that asked to be enrolled in such program.

Since its institution, however, the Remessa Conforme Program has been target of questions, especially from the Brazilian business retailer. In addition, the program was also inserted in broader discussions carried out by the Federal Government involving the constant search for additional sources of revenue by the Brazilian Government.

The controversy has now gained a new chapter. This is because, as of August 1st, 2024, international orders with declared values up to  US$ 50 made by individuals on e-commerce platforms will no longer be able to enjoy the already mentioned exemption of the Import Tax, evenif subject to the Remessa Conforme Program.

Published in the Federal Government's Official Gazette on June 28, Law 14,902/24 – and as a result of the conversion of Bill 914/24 – brings important changes to Decree-Law 1,804/80, which regulates the Simplified Taxation Regime (RTS) in postal shipments and international parcels.

Under the new rules, Import Tax tax brackets were created for the import of goods by postal shipments or international parcel. Such changes can be summarized as follows:

• imposition of a 20% import tax rate to international shipments with a declared value up to US$ 50;
• possibility of deduction of US$ 20 in relation to the amount resulting from the imposition of the 60% rate on international remittances between US$ 50 and US$ 3 thousand; and
• revocation of the provision that allowed the Ministry of Finance to provide for the exemption of Import Tax on international shipments with value up to US$ 100.

The same law instituted the Green Mobility and Innovation Program (Mover). On the same date as the publication of Law 14,902/24, two complementary rules were also published: Provisional Measure 1,236/24 and Ordinance of the Ministry of Finance 1,086/24.

The Provisional Measure 1,236/24 brings additional amendments to Decree-Law 1,804/1980 to provide for the possibility of exemption from Import Tax for medicines imported by individuals for their own use. It also establishes the possibility of applying different rates (observing the minimum rates of 20% of 60%) depending on the method of importing the products, either by postal shipments or through the enrollment of the Remessa Conforme Program.

In addition, the provisional measure determines that shipments of goods with a declared value up to US$ 50, whose import declarations are registered until July 31, 2024, will continue to be exempt from payment of Import Tax. The imposition of the 20% rated on these international shipments of goods will be applied as of August 1^st, 2024.

On the other hand, the Ordinance of the Ministry of Finance 1,086/24 regulated the changes promoted by Law 14,902/24 and Provisional Measure 1,236/24 – jointly with the consequent amendment of Ordinance 156/99, which currently regulates the Simplified Taxation Regime.

According to the new regulation, it was established that only international shipments of goods purchased through e-commerce platforms enrolled at the Remessa Conforme Program are subject to a 20% rate on orders up to US$ 50 and the forecast of deduction of the value of US$ 20 – in cases where the 60% rate is applied.

Thus, it is clear that the general rule for postal shipments or international air parcels by up to US$ 3 thousand within the scope of the RTS is to apply the rate of 60% of the Import Tax, without the possibility of any deduction.

In a press conference, the Federal Revenue Service mentioned that the definition of the deadline for the effectiveness of these changes in taxation (August 1^st, 2024) took into account the period of adaptation of the Federal Revenue Service systems and the platforms participating in the Remessa Conforme Program with the new rules.

Also according to the Federal Revenue Service, the changes make it clear that the Remessa Conforme Program remains in force – a program exalted by the Revenue as responsible for providing fluidity to foreign trade and security to the logistics chain, as well as offering transparency to the consumer.

The complete text of the press conference and the presentation of the Federal Revenue Service on the subject can be found at this link.

It is relevant to highlight that the new rules deal only with the Import Tax. This means that postal shipments or international air parcels remain subject to the ICMS at a rate of 17%, as established by ICMS Convenant 81/23. With the changes, however, the state tax will be levied on a calculation basis plus the Import Tax, including on orders up to US$ 50.