To implement an e-commerce business in Brazil, you need to formally open a company. To do so, an entrepreneur like you must choose the appropriate tax system, which is done according to your projected revenue (gross income).
How to distinguish the annual revenue of your online store? To help you answer this question, I will present below the classification of the types of companies according to the profit they make annually. Based on this classification (with approximate values), you will be able to have a better view of your own business and choose the right tax system. Follow:
• Individual Micro Entrepreneur (MEI):
It is the type of company that earns up to R$ 60 thousand annually.
• Microenterprise (ME):
Invoice between R$ 60 thousand and R$ 360 thousand per year.
• Small Business (PE):
Invoice between R$ 360 thousand and R$ 3,6 million annually.
• Small Medium Enterprise (SME):
Invoice between R$ 3,6 million and R$ 16 million per year.
• Medium Company (M):
Invoice between R$ 16 million and R$ 90 million annually.
• Large Company (GE):
Invoice over R$ 90 million per year.
By looking at the classification mentioned above, you will be able to choose the right tax system for your e-commerce business. See below which tax systems are used in Brazil (with approximate values) and select the most appropriate for your type of company and billing:
• Simple national:
This system must be adopted by e-commerces with a limit of BRL 3,6 million for profit forecast, that is, MEI and ME fit into it (depending on the branch of activity). In Simples Nacional, the payment of taxes is unified (it unites PIS, Cofins, IPI, ICMS and other taxes in a single payment booklet with reduced rates). In the case of MEI, the maximum tax limit to be paid monthly by the virtual store will be R$ 52,85, an amount that is updated year by year.
• Presumed profit:
It is the ideal tax regime for companies that earn up to R$78 million annually. It includes MEs, PEs, SMEs and even MSs (depending on the area of activity). In this system, the CSLL and the Income Tax are levied on the rate established by the Federal Revenue Service.
• Real profit:
It is the tax method of companies with revenues greater than R$ 78 million. Some Ms and GEs fit into it (depending on the type of activity). The rates, in this system, are established based on the calculation of income minus expenses.
The right time to choose your tax system and open a business is when you're developing your Business Plan . If you lack knowledge on the subject, hire an accountant to help you define and open your e-commerce business. Once that's done, you'll be free to launch your online store and start selling on the internet!
