The Senate is preparing a tax reform project that can modify tax collection on platforms such as OLX and Mercado Livre. However, senator and rapporteur Roberto Rocha (PSDB-MA) says that individuals will not be taxed when selling products used over the internet: “of course this can only be fake news or misinterpretation of what I said”, he says in profile official on Facebook.
In an interview with Focus Congress last friday (30), the senator said that the tax reform project will propose the taxation of products currently sold over the internet without taxes. The rapporteur’s advisers recalled that products advertised by individuals do not pay taxes.
The proposal has had a negative impact in recent days. The senator held a meeting with journalists on Monday (2) and commented on the possible collection of taxes on the sale of used cars by individuals.
“No, I never said that,” said Rocha. “I never tried to tax used products… if the guy has a used shoe, will he put it to sell, individual? Of course, you don’t have to have taxation. ” Instead, he proposes “fair taxation” for companies that sell over the internet. (The full statement is at the end of the post.)
Rapporteur wants to collect tax from sites like Mercado Livre
On Facebook, the senator explains that “no country in the world charges taxes on transactions between individuals; tax is between CNPJ and CPF ”.
He continues: “When you buy from a company (not from a person) in Mercado Livre, they issue a bill and the tax is already included. Likewise, you pay ISS for Netflix, Spotify or Google. The tax reform will eliminate the confusion of so many taxes and will be especially favorable to the consumer. ”
Legal entities that make sales through Mercado Livre, Amazon or any other marketplace are already required to pay 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).
The Senate tax reform wants to create a single taxation that would be called IBS (Tax on Operations with Goods and Services), uniting ICMS, ISS, PIS, Cofins and IPI.
Rocha has already stated, however, the intention to tax the sites that act as intermediaries between buyer and seller. “Today, the largest retailer in Brazil is Mercado Livre, which does not pay a cent of tax,” he said in a Senate public hearing.
The Free Market paid US $ 49 million in taxes on profits in 2016, and another US $ 40.3 million in 2017. The company had a loss in 2018.
“I never tried to tax used products”, says senator
Here is the complete statement by Roberto Rocha on the idea of taxing individuals on OLX or Mercado Livre:
No, I never said that. That is why this meeting today with the press is important. I never tried to tax used products.
It is obvious that I have said that technology allows very large consumption on the internet today. And we need to find ways to make it tax fair. Now, if the guy has a used shoe, will he put it up for sale, individual? Of course, you don’t have to have taxation.
Another thing is the company, which lives on it. You see? We are talking about digital tax reform. It is not to be able to tax only those who sell used products, as has been said, and which had a bad impact.
And that is why I sometimes avoid giving certain opinions so as not to disturb the course of the debate. It is a very arid, very technical debate, which sometimes requires a lot of information to avoid too much heat, because politics is very hot, but this debate requires much more light than heat.
Journalistic article states that the Tax Reform, of which I am the rapporteur, will charge sales tax on products used in the e-commerce, like Mercado Livre.
Of course, this can only be fake news, or misinterpretation of what I said.
No country in the world charges taxes on transactions between individuals. Tax is between CNPJ and CPF.
When you buy from a company (not from a person) at Mercado Livre, they issue a bill and the tax is already included. Likewise, you pay ISS for Netflix, Spotfy or Google.
The Tax Reform will eliminate the confusion of so many taxes and will be especially favorable to the consumer.
See the interview I gave to the national media today.
Published by Roberto Rocha on Monday, September 2, 2019