On November 4, 2016, the Government of the State of São Paulo sanctioned Decree No. 62.250 , which amends Decree No. 57.608 of December 12, 2011. This will modify the taxation of e-commerce companies in São Paulo, potentially benefiting local entrepreneurs.
According to information from the government portal, the modified special tax regime that will be applied to e-commerce is the same that is already used by large retail companies that have distribution centers in the vicinity of the state of São Paulo.
In the past, taxpayers had to collect the tax by tax substitution and request reimbursement of the amounts from the Secretary of Finance in future opportunities.
Now, with the enactment of Decree No. 62.250, e-commerce companies that conduct interstate transactions can obtain products by paying ICMS (a Brazilian sales tax) only when the products are shipped.
With this measure, it is expected to achieve the following effects:
– Avoid the accumulation of ICMS credit
– Alleviating the working capital of e-commerce
– Reduce e-commerce operating expenses
The amendment to Decree N° 57.608 covers companies that sell products via the Internet to the final consumer, companies that act as distribution centers, electronic platforms in general and telemarketing services.
