ICMS
Category: tax
Imposto sobre Circulação de Mercadorias — Brazilian state-level tax on goods and services.
ICMS (Imposto sobre Circulacao de Mercadorias e Servicos) is a Brazilian state-level tax on the movement of goods and interstate/intercity transport services. Rates vary by state (typically 7%-18%) and product type. For cross-border e-commerce, ICMS applies to imported goods and was reformed in 2023 to apply a standard 17% rate on international e-commerce imports.
Examples
- • A cross-border seller shipping goods to Brazilian consumers must account for ICMS at the applicable state rate (e.g., 18% in Sao Paulo).
- • Since August 2023, international e-commerce shipments to Brazil are subject to 17% ICMS plus a 20% Import Tax on orders over US$50.
- • Brazilian marketplace Mercado Libre collects ICMS on behalf of sellers for in-state transactions.