Taxes on E-Books Dropped in Brazil
March 14, 2017 Taxation in Brazil
A new ruling by the Supreme Court of Brazil has enshrined the idea that digital books should enjoy the same tax treatment as their physical counterparts.
In September 2016 a debate began regarding the taxation of e-books, with some parties claiming that the digital products should not face taxation, while opponents claimed that the rules should be restricted to physical books only.
The tax breaks on books stems from legislation in Brazil which protects books from taxation as a matter of freedom of speech.
The Supreme Court has now ruled that the digital versions of books are practically indistinguishable from their physical versions, and, therefore, equally eligible for the tax break.
The taxes applicable on the sale of books in Brazil vary, as they fall under the scope of federal taxes, state taxes, and city taxes.
It was also noted that reading devices, such as e-book readers, should also fall under the scope of the tax exemptions.