Import taxes: What are the main ones?

What are the main import taxes?

Our aim with this article is to provide you with information so that you have a basic understanding of the main taxes inherent in importing and how Afianci can be a strategic partner from this perspective.

In addition to being a differentiator, the import process can be an assertive strategy for optimizing and reducing costs within the supply chain. This is because it provides opportunities beyond the domestic market, expanding and bringing more options for goods and services.

As part of international trade, it also contributes to global economic development and the strengthening of bilateral relations between countries.

However, there is a need to be aware of the taxes levied on imports, as this directly affects the cost of the product and consequently the formation of the sales price to the end consumer.

Understand how taxes are due

In the definition of Serasa, Tax is “a compulsory charge levied by the government”. In other words, “the revenue collected from it is used by the state to cover its expenses”.

In addition to this definition, it is levied on imports in order to protect domestic industry, as well as to regulate the products that enter its territory and promote the domestic economy.

However, in the Brazilian reality, it has become a factor of extreme complexity and bureaucracy, as the legislation is often not assertive on the subject. This leads companies to turn to the legal system to get an understanding of a particular tax or the way in which it is levied.

What is a triggering event?

The collection of a tax requires legal support. In other words, there can be no doubt and/or questioning as to how, when and why it is levied, as well as the obligation to pay it.

Therefore, according to Portal Jus Brasil, the triggering event is “a situation that is provided for by law (hypothesis of incidence), which when it occurs in practice gives rise to a tax obligation”.

The taxable event for an import is customs clearance, since this is the administrative milestone in the process of nationalizing any imported goods. This therefore means that taxes are levied on this operation.

We would also point out that the literal definition is in the article 116 of the National Tax Code (CTN).

Follow the explanation below!

What is the tax base?

The calculation basis is customs value of the goods, In general, according to the Brazilian Federal Revenue Service (RFB), “it is found from its FOB (Free On Board) value, plus the international freight and insurance values, converting these values into Reais, using the exchange rate on the day the import is registered”.

Which taxes do not consider only the customs value in their calculation basis?

Of the taxes levied in an import process, only two have different calculation bases. These are:

IPI - the calculation basis is the sum of the Customs Value (VA) and the Import Tax (II); and
ICMS - calculation basis is VA + II + IPI + ICMS + other taxes + customs costs.

What are the main import taxes?

Below we briefly highlight the taxes most commonly levied in an import process, which have been segmented according to their basis:

Federal

Import Tax (II) - It is levied on goods coming from abroad.
Tax on Industrialized Products (IPI) - as it says, is levied on industrialized products, whether domestic or foreign.
Social Integration Program (PIS) and Contribution to Social Security Financing (COFINS) - the purpose of this levy is social security, it also aims to protect foreign products from being overly advantageous compared to domestic products.
Tax on Financial Operations (IOF) - their collection is related to financial operations, so that in import processes they concern exchange issues related to payments and/or receipts of foreign currency.

State

Tax on the Circulation of Goods and Services (ICMS) - its operative event is the movement of goods, as well as the provision of services.

Municipal

Tax on Services of Any Kind (ISS) - in import processes occurs when it is directly related to the provision of a service. For example, those related to the customs clearance of goods.

In this sense, it can be seen that taxes form a large part of import costs, which directly interfere in the formation of the selling price to the consumer.

Therefore, the success of a foreign trade operation depends on carrying out an assertive survey of these amounts, with greater emphasis on the taxes levied.

Can tax complexity affect the competitiveness of Brazilian companies?

The Brazilian tax system is known for its complexity and for involving a variety of taxes, fees and contributions, creating a series of fiscal obligations that companies must fulfill when making their imports.

So the answer is yes, tax complexity can affect the competitiveness of Brazilian companies and, according to an article on the FecomercioSP website, it is estimated that around 1,501 hours are spent annually on calculating taxes, of which 885 are exclusively for calculating ICMS - one of the taxes levied on imports.

In addition to the complexity, the sum of the various taxes levied on imports results in a high tax burden, which increases costs and reduces the competitiveness of Brazilian companies.

Count on Afianci's experience to import products

The act of moving products or goods from one country to Brazil is complex and challenging. Not only because of the number of players involved, but also because of customs and tax issues.

Therefore, in order for the operation to go smoothly and profitably, it is essential to rely on partner companies whose knowledge and expertise in international operations is recognized.

And in this regard, we are able to unify, optimize and differentiate your operation by offering all international trade services in one place.

That's why Afianci has developed expertise over the years to cooperate with its clients who wish to optimize their import processes. With us, you can count on support for