Brazil drops e-commerce ICMS for small businesses

Wed 24th Feb 2016

Brazil has suspended ICMS, the national VAT regime, on small internet retailers.

The tax is charged on the taxable supply of goods or services to consumers across Brazilian internal states borders. The Brazilian Federal Court has this month held that the obligation on small e-retailers to charge ICMS as part of the simplified accounting regime put an unfair burden on small online sellers.