A proposal pending in the Chamber of Deputies wants to simplify the operation of virtual stores that allow the withdrawal of products: for this, it changes the way of charging the ICMS (Tax on Circulation of Goods and Services). The physical store is no longer responsible for the tax, paving the way for more online sellers to make deals with physical establishments.
Presented by Congressman Enrico Misasi (PV-SP), the Complementary Bill (PLP) 148/2019 exempt from ICMS “operations that send goods to another legal entity for simple delivery to final consumer, due to multichannel sales”.
This does not mean that the online purchase will be exempt from ICMS, but it does mean that the tax payment would be borne by the online store that the sold – not from the physical store that delivered it. The tax would be charged only when the goods were removed by the customer.
The text also guarantees the customer the right to return or exchange the product at the same physical store where it was picked up. If approved, PLP 148/2019 will apply to all of Brazil.
This is a way to stimulate the “click and remove” modality, since physical stores would not have to worry about ICMS on products sold online.
There is another advantage: this opens the way for more virtual stores to make a delivery agreement in physical stores, even if they are from different companies. For example, Americanas.com would have more freedom to offer the “pick up in store” service in stores other than Lojas Americanas.
Integration of physical and online store comes up against ICMS
“The integration of channels is already a reality in several countries and is showing a trend towards global retail,” says Misasi in his justification for the project. “It turns out that the implementation of these new sales modalities still comes up against the current tax legislation, especially with regard to the ICMS.”
The deputy indicates that the approval of the project will lead to the adoption of other delivery modalities and an optimized consumption experience, “reducing delivery time, transportation costs and offering a greater range of options to the consumer”.
The project is given priority in the CFT (Finance and Taxation Commission). Then, it will be analyzed in the CCJ (Commission of Constitution and Justice) to then reach the plenary of the Chamber. If approved by the Senate and the President, the new rule will become effective 120 days after publication.
With information: Chamber of Deputies.