Exemption CONFIRMED today (02/22) on SHEIN products? Understand!

Shein joined the Federal Revenue Service’s Compliant Remittance program, benefiting consumers with tax exemption on purchases up to US$50.

Shein is a global online fashion and lifestyle retailer that has taken the world by storm with its formula of low prices, product variety and fast delivery.

Founded in 2008 in China, the company quickly became an e-commerce giant, reaching millions of customers across the globe. In Brazil, it became even more of a ‘favorite’ during the Covid-10 pandemic.

However, the new government management started charging taxes on purchases from Shein. There is a way to buy online retail without being taxed. Continue reading this article to check it out.

Find out who can count on the Shein exemption – Credit: @jeanedeoliveirafotografia / pronatec.pro.br

Shein customers celebrate tax exemption news

The online fashion giant, Shein, recently joined the Federal Revenue Service’s Remessa Conform program, an initiative by the Ministry of Finance with the aim of making the collection of taxes on exported products more transparent.

This movement is excellent news for Brazilian consumers, who can now benefit from tax exemptions on purchases made through the platform.

The benefit of tax exemption

Tax exemption does not apply to all purchases made on Shein. To qualify for the Import Tax exemption, purchases must be within a value limit established by the Remessa Conformal program.

Specifically, purchases of up to US$50 (approximately R$245) are now exempt from this tax. This value limit opened a new horizon for Brazilian consumers.

Other taxes

Despite the Import Tax exemption for purchases up to US$50, other fees may still apply, increasing the final cost of the products.

One of these fees is the ICMS (Tax on Circulation of Goods and Services), a state tax.

The ICMS rate on purchased products is 17%, regardless of the state, which represents an increase in the final cost for the consumer.

Impact on local market

The introduction of ICMS and tax exemption for purchases up to US$50 have significant impacts on the local market and consumer behavior.

The federal government observed a drop in the volume and revenue of products worth up to US$50, with a portion of these purchases being replaced by products from national suppliers.

This change indicates a possible tendency towards strengthening the domestic market and a change in the purchasing preferences of Brazilians, who may opt for local products over imported ones, depending on the category and value.

All about Conformal Shipping

Conformal Remittance, launched by the Federal Revenue Service in 2023, aims to simplify and reduce bureaucracy in the process of importing small international parcels.

The program offers benefits to both consumers and e-commerce companies like Shein.

The new feature guarantees greater agility in the delivery of orders, as participating companies already transmit to the Federal Revenue Service all the information necessary for customs clearance.

For e-commerce companies, the program offers the advantage of reducing costs and delivery times.

Companies participating in the program can also benefit from greater predictability in import operations.

To participate in the program, e-commerce companies must register with the Federal Revenue Service and commit to complying with some rules, such as:

Transmit all information about international orders to the Federal Revenue before they arrive in Brazil; Ensure the quality of products sold; Adopt measures to prevent the entry of counterfeit or smuggled products.

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