The Tale of 50 Tax-Free Dollars

The 50 Dollar’s Tale

The number of international orders received by the Post Office daily is not clear. In 2018 the president of the institution stated that they were receiving 100 to 300 thousand international orders daily.

On the 27th of August of the same year, the Post Office announced the addition of 15 reais for the domestic re-dispatch of international parcels.

In December 2019, Correios (Brazilian Public Post Office) began to require International Marketplaces to inform the CPF (TaxID) of importing consumers on invoices and orders.

Today (2022) it is estimated that the Post Office receives between 500 and 700 thousand orders a day, from which only 3% to 7% are taxed.

In the case of taxation, the importing consumer can pay this amount through the Correios website or in person at the agency itself.

But the most important is the “tale that orders up to 50 dollars are tax free”, this statement is a half-truth: It is tax free when the sender is a person and not a company, that is, a family member, or a friend abroad who sends a gift to a Brazilian citizen.

However, when it comes from a company, or a marketplace, the Brazilian Federal Revenue considers that a commercial company abroad is carrying out the shipment, therefore, it is liable to taxation.

Currently, and unfortunately for the public coffers, the Post Office does not have the ability to tax all orders that arrive through its import system, failing to collect the approximate figure of 9 billion dollars per year.

But make no mistake, since 2019 it has collected all the TAX IDs from whom it has imported orders. Also, as the tax amount is due, the fact that it is not charged does not mean tax exemption.

There is clearly a slow but continuous movement of the governmental institution to control direct imports, and we must not forget that Brazil is a country with a protectionist culture.