Brazil Eliminates Import Tax Exemption on International Packages

Starting next month, international purchases in Brazil will no longer benefit from the import tax exemption. Purchases on e-commerce websites like AliExpress, Shein, and Shopee will likely be more expensive due to the updated tax regulations.

In the past, goods with customs values up to US$3,000 were subject to a flat import tax rate of 60%. However, an exemption applied to transactions between individuals for imported items valued up to US$50. As we explained HERE, the challenge was staying below this threshold when considering shipping and insurance costs.

In 2023, the law changed. Brazil extended the exemption to shipments from companies, but that didn’t affect the US$50 limit. As long as the foreign retailer signed up for the government program Remessa Conforme, the transaction would be exempt from federal import tax, although it was still subject to state ICMS tax.

And now, again, the law has changed. Effective August 1st, Law 14,902/2024 introduces a new import tax rate and progressive brackets.

Now, international packages with an import value up to US$50 will be subject to a flat import tax rate of 20%. Purchases between US$50.01 and US$3,000 will incur a 60% import tax, less a US$20 discount on the tax amount.

Despite all these changes, one thing remains clear: import taxes in Brazil still add up. They’re an unavoidable cost of purchasing goods from abroad. If you’re determined to keep your costs down, consider buying domestically whenever possible.