Shein taxation: customers complain about taxes more expensive than the purchase

The Chinese e-commerce Shein has been the target of criticism due to its tax rates, which even exceed the purchase price. Brazilian entrepreneurs have accused international e-commerce companies, including Shein, of circumventing taxation rules. As a result, taxation of purchases made on these platforms may become a reality for consumers.

Taxation of the largest international electronic commerce

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Taxation of up to 60%

The Federal Revenue has defined a rate that provides for the taxation of 60% on the total value of purchases of up to US$ 500 (about R$ 2600) for individuals. For amounts above this limit, with a limit of BRL 15,600, other fees may also apply.

Due to these taxes, the final values ​​can exceed the price of the purchased products, which has been causing revolt among consumers.

Value of fees greater than the purchase

Consequently, consumers across Brazil report excessive charges on small-value purchases. There are reports on the internet of consumers who were taxed at higher values ​​than the products themselves.

In the case of purchases made at Shein, the company offered consumers the option of returning the money spent on the purchase or refunding 50% of the value of fees.

Entrepreneurs put pressure on the government

Entrepreneurs and retailers from all over Brazil have been pressuring the government to tax these large e-commerce companies.

According to them, these companies take advantage of the tax exemption for individuals for purchases of up to fifty dollars – to circumvent the taxation system.

Consumers against taxation

On the other hand, consumers put pressure on governments so that they do not allow the taxation of companies such as: Shopee, aliexpress and Shein herself.

They allege that these stores made it possible for certain customer profiles to have purchasing power, since the international stores offer products with a much lower value than the products national.

Customers are also asking for a reduction in taxes at Brazilian stores so that they can go back to shopping there and not at Shein.

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