As Latin America's largest economy, Brazil presents a massive and promising blue ocean for e-commerce. However, to successfully navigate this lucrative market, cross-border sellers must first decipher its complex tax system. Mastering four essential taxes is the critical first step towards ensuring compliance and unlocking accurate, competitive pricing.
Four Types of Brazil Cross-Border E-Commerce Taxes
1. Import Duty (II)
Import Duty, referred to in Portuguese as Imposto de Importação (II), is a federal tax imposed on goods imported into Brazil. The applicable rate varies according to the product category and customs classification.
Key Information
Scope: Applies to most imported goods, particularly those valued above USD 50.
Calculation Basis: Determined based on the CIF (Cost, Insurance, and Freight) value of the imported goods.
Typical Rates: Generally ranges from 0% to 35% for B2B scenarios； 20%/60% fixed rate for B2C scenarios.（
For products exceeding 50USD, the Rate rises to 60%！）
2. Industrialized Product Tax (IPI)
The Imposto sobre Produtos Industrializados (IPI) is a federal tax applied to industrialized products, whether produced domestically or imported. It regulates industrial activity and consumption.
Key Information
Taxable Goods: Industrially processed products.
Calculation Basis: Typically a percentage of the factory price for domestic products or the CIF value for imports.
Rate Range: Generally from 0% to over 15%, depending on product classification.
3. Federal Social Contribution Taxes (PIS/COFINS)
PIS (Program of Social Integration) and COFINS (Contribution for Social Security Financing) are federal taxes that fund social security programs in Brazil. They are levied on the sale of goods and services, including imported products.
Key Information
Taxable Amount: Calculated over the total invoice value, including shipping and insurance costs.
Rates for Imported Goods: PIS: 1.65% / COFINS: 7.6%.
4. Merchandise and Service Circulation Tax (ICMS)
The Imposto sobre Circulação de Mercadorias e Serviços (ICMS) is a state-level value-added tax applicable to the circulation of goods and certain services within Brazil. For cross-border e-commerce, ICMS must be paid according to the buyer’s state of residence.
Key Information
State-Specific Rates: Each Brazilian state determines its own ICMS rate, generally ranging from 7% to 18%, with exceptions up to 25%.
Calculation Basis: Applied on the product value plus Import Duty, IPI, and PIS/COFINS.
Significance: Often represents the largest tax component for imported goods in cross-border e-commerce.
Summary
| Tax | Level | Typical Rate | Notes |
| Import Duty (II) | Federal | B2B：0%-35% B2C：20%/60% |
Based on CIF; varies by product |
| IPI | Federal | 0%-15%+ | Applied to industrialized goods |
| PIS/COFINS | Federal | 1.65% / 7.6% | Calculated on total value including shipping |
| ICMS | State | 7%-18% (up to 25%) | State-specific; applied to goods and certain services |
Brazil’s complex tax system poses both challenges and opportunities for cross-border e-commerce sellers. A thorough understanding of Import Duty (II), Industrialized Product Tax (IPI), Federal Social Contribution Taxes (PIS/COFINS), and the Merchandise and Service Circulation Tax (ICMS) is essential for cost management and compliance success.
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