Shipping to Brazil: New Tax ID regulations

BusinessEcommerce

  • Author Ilaria De Virgiliis
  • Published April 4, 2020
  • Word count 938

Shipping to Brazil: New Tax ID regulations

Fast and reliable Shipping to Brazil might very well be every eCommerce owner’s dream.

Brazil, in just a few years, has become one of the fastest-growing online retail markets worldwide.

ECommerce sales are on the rise worldwide, and every day more and more Brazilians choose to buy their products online. The variety of the products bought, from electronics and fashion to safety equipment, proves that purchases are made by both men and women, with a higher spending of the latter.

Just in 2017, Brazilian online purchases constituted alone, for more than 38% of the South American eCommerce sales; while in 2018, retail online sales amounted to almost $15 billion. In 2020 the country’s online buyers are likely to 130 million people!

These figures make Brazil’s eCommerce market a very sweet treat to eCommerce giants like Amazon, eBay, and Alibaba, but the reality is that online retailers too can get a slice of this multimillion cake.

In the past, some small online retailers have been prevented from entering this market due to unreliable and slow postal services, but in 2020 things have changed and gradually eCommerce owners are opening up to this market.

Do you want to start shipping to Brazil your products? Continue reading this article to learn all the rules that you must follow to avoid any set backs.

Shipping to Brazil: what has changed

As we mentioned above, shipping services have improved in Brazil, over the course of the last few years. However, along with the improvement of the postal service, new regulations were introduced by the Government for all international orders and shipments.

In December 2019, the Brazilian Post and Telegraph Corporation (Correios) has published a statement that, as of the 1st January 2020, the Brazilian Internal Revenue Service will not accept parcels that do not include the recipient’s Tax ID number on the customs declaration and shipping labels. If the recipient’s Tax ID is absent, the parcel will be returned to the sender or destroyed by the Brazilian Customs.

Each and every parcel must have the recipient’s Individual Tax Identification Number (CPF) or the Legal Entity Tax Identification Number (CNPJ), in order to begin the process of Customs clearance.

Shipping to Brazil: when you receive an order on your store

The new rules may be a tad complex to follow, however, you still should not have any problems in arranging the shipping to Brazil, as long as you have all the information you need. Because if you do not provide the requested information, your parcels may be prevented from entering the country and will be destroyed by the authorities, if the return is not achievable.

This is why it is very important that your clients insert their Tax ID code at the time of the order at your store.

The correct format in which the individual’s tax ID is: 3 groups of 3 numbers separated by a period (.) and a dash (-), and ending with 2 final numbers like in the example below:

FORMAT: 000.000.000-00

Example: 123.456.789-10

If your client is not an individual person but a company, the format Tax ID format will be different, as we are talking about business tax IDs. This type of IDs should be formed by 3 groups of 3 numbers separated by a period (.), followed by a forward dash (/) followed by 4 numbers, and dash (-) with the final 2 numbers.

FORMAT: 000.000.000/0000-00

Example: 123.456.789/1011-12

Drop shipping to Brazil

Owning an eCommerce store and fulfilling all your orders by yourself can take a lot of time and money since you will need to deal with all the shipping logistics by yourself and you will need a warehouse to store your products.

This model of business can be really risky, as you have no guarantee that your products will sell in time or if you will be left with a warehouse full of products that no one wants to purchase. This is why dropshipping is becoming increasingly popular with online retailers.

If you choose to fulfill your orders with dropshipping, all you will need to do is to choose your products and arrange the marketing for them. Everything thing else, logistically-wise will be outsourced to your supplier. But even then, you might find the process quite time consuming, as you will have to manually import your products to your website and you will need to share your orders’ information with your suppliers, every single day.

But do not despair, because we are here to help! Yakkyofy is the only company that can provide you with a comprehensive software that will assist you in all your business daily tasks, from the sourcing of your products to the fulfillment of your orders, all automatically.

We only cooperate with the best Chinese factories and can provide over 12 million high-quality products. Our Image Recognition tool, based on machine learning technology, can provide you quotations at B2B prices in just a few minutes, and with our Shopify and WooCommerce integration, you can import your products to your website in just a few minutes!

As per the new Tax IDs regulation, at this moment in time, Shopify and WooCommerce do not offer a designated field to add this information. This is why Yakkyofy gives you the option to add the Tax ID code in the notes field, in this way you will not have any problems in providing the Brazilian Customs authorities all the correct information.

We’ll tell you even more: with us, you can easily dropship your orders to Brazil with the fastest service available on the market, ePacket, with an average delivery time of 7-15 days!

So what are you waiting for?

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