Senator Roberto Rocha (PSDB-MA), rapporteur of the tax reform project, commented on his proposal to tax online sales through platforms such as OLX and Mercado Livre: he will propose a tax on products advertised by individuals, who are currently exempt .
Update (03/09): Senator Roberto Rocha says that individuals will not be taxed when selling used products over the internet; find out more details here. The original text follows.
Rocha tells the Focus Congress that intends to create a “digital tax legislation”, with laws covering online sales that are still tax exempt. “Today there is a lot of commerce on the internet. You can even buy a car over the phone. So, we have to have mechanisms and tools to tax this ”, says the senator.
One of the targets of the reform will be sales made by individuals on sites such as OLX and Mercado Livre. The current law does not require issuing an invoice in these cases, and does not charge tax on the transaction. The individual is taxed only if he sells more than R $ 35 thousand per month; in this case, he must pay income tax on capital gains (difference between the resale price and the value of the asset).
The reform rapporteur also says that the current law opens a loophole for the sale of counterfeit and smuggled products via the internet: “today there is a very high tax evasion and informality”, says Rocha.
He must hold a public hearing to hear experts in the technology field on the subject. The rapporteur intends to present an opinion on tax reform within 30 days in the Senate’s CCJ (Commission on Constitution and Justice).
Legal entity pays tax on marketplace sales
How much tax will individuals have to pay? This will be determined by a complementary law, which will define the rate and specify whether the collection will be in the state of origin or destination.
Meanwhile, legal entities that use the marketplace to sell their products already have to pay several taxes: ICMS in the case of physical goods, or ISS in the case of services; in addition to PIS, COFINS, IRPJ (Corporate Income Tax) and CSLL (Social Contribution on Net Income).
In general, the Senate’s tax reform should simplify the collection of taxes in Brazil by creating a value-added tax: it would be called IBS (Tax on Transactions with Goods and Services) and would unite ICMS, ISS, PIS, Cofins and IPI.
With information: Focus Congress.