Key Considerations for Expanding E-Commerce Into Brazil: Payments, Fraud and Taxation

Taxation
Brazil has one of the most complex taxation systems in the world and is a heavily protected market with taxes on imported goods of up to 60 percent of the goods’ value. Products and services are classified into more than 300 tax categories. The regular rate of withholding tax applicable to digital products (e.g., music) in Brazil is 15 percent. Tax regulations and rates might differ between federal states, and special sales taxes apply for inter-regional transactions. A lot to consider! One of the best ways to navigate the complexity of the Brazilian tax system is to work with a payment service provider that can help to reduce local taxes with optimized settlement procedures, taking the burden off of the merchant.

While some of these things may seem daunting, the opportunity that Brazil presents can make the leap worth taking. In addition to providing tax calculation, some payment service providers can also offer the necessary payment methods for consumers, easing market entry and helping to drive success. Ensuring you have the right payment solutions in place, coupled with a means for determining taxes, takes you one step closer to realizing the benefits that conducting e-commerce in Brazil can deliver.

Ralf Gladis is the co-founder and CEO of Computop, a global payment service provider.