The Legislative Assembly of Rio de Janeiro approved on Tuesday night Bill 2023/2020 which, in practice, makes fintechs and e-commerce sites responsible for the payment of ICMS tax owed by its customers in online transactions. The text also opens the possibility of new accessory obligations related to the issuance of tax documents resulting from these transactions.
In other words, if the retailer fails to pay the tax on a sale, or fails to fill out all the paperwork correctly for the government, the financial companies and e-commerce sites through which the transaction was carried out will have to bear the responsibility for payment and even fines.
The bill will still be submitted for approval by the governor, who authored the bill, but it is already causing concern among merchants. According to companies and entities in the sector interviewed by UOL, this measure could simply make e-commerce unviable in Rio de Janeiro. And just at the time when this channel has become a lifeline – whether for retailers, who are unable to sell because they had to close their physical stores; or for consumers, who need the Internet to purchase products because they are in quarantine.
Tax
Proof of this is the growth in online sales between February 25 and March 20 alone. According to data from the Brazilian Association of Electronic Commerce (ABComm), in partnership with the Compre & Confie Movement, sales in the health category increased by 111%. In the beauty, perfumery and personal hygiene area, the increase was 83%, while in supermarkets, e-commerce shows an increase of 80% in purchases.
And this growth is a trend that was already strong even before the coronavirus pandemic. In 2019, e-commerce grew 13.5% compared to 2018, according to Mastercard SpendingPulse. “This law, if sanctioned, creates a series of operational difficulties. It is a law that will only increase litigation,” said a person responsible for the legal department of a large company that operates in the e-commerce segment.
Tax increase
For experts, the bill approved in Rio de Janeiro is unconstitutional.
Velloza Advogados partner Fabrício Parzanese said that the logic behind this law is the search by states and municipalities for more efficient ways of collecting taxes. “The logic behind this type of measure is to concentrate the responsibility for declaring and collecting taxes in certain areas to facilitate collection,” he said.