Foreign trade has become an attraction for Brazilian businessmen who wish to import raw materials or even sell their goods abroad. Despite the opportunity, there are also some challenges.
The Brazilian tax system has several rules for those who wish to operate in international trade. There are several documents that need to be issued so that the product is not stuck at customs.
Tax classification is one of the most important moments of the operation, as it is when the cargo undergoes a rigorous assessment by the Federal Revenue Service that can impact fees and even fines if tax errors are found.
Incomplete information, expired documents and omissions are usually the biggest problems identified as tax errors that cause the importer to suffer penalties.
Documents required for importing products
One of the biggest difficulties that usually leads to tax error is omitting an import document. With that in mind, we have listed wich are they, so you can put together a checklist:
● Certificate of Origin (CO);
● Cargo packing;
● Proforma Invoice or Proforma Invoice;
● Commercial Invoice;
● Bill of lading;
● License to import (LI);
● Import Declaration (DI).
It is worth remembering that, depending on the sector in which your company operates, there may be additional documents.
Most common tax errors when importing products
Generic categorization: One of the most common mistakes is to classify the product in a wrong and generic way without considering the NCM. In these cases, the importing company may end up paying fines.
Loss of documents: Many companies do not digitize the collection of documents and end up losing tax information that may be required by the Federal Revenue in the future.
Not paying taxes: The wrong calculation of the taxes to be paid (ICMS, Cofins, Import PIS, etc.) can make the Revenue understand the act as evasion - in these cases, the penalty is severe and generates considerable financial losses.
Incorrect product values: An illegal practice in imports is the under-invoicing that happens when the importer registers the DI based on a commercial invoice that does not reflect the actual price paid, with the aim of collecting less taxes on the nationalization of the goods.
How to avoid financial and tax problems when doing foreign trade?
Incorrect taxation can cause serious problems for companies, but there are ways to avoid it. It is important to be up to date on fiscal and tax legislation, rely on professionals specialized in accounting and taxation, and invest in financial management technologies to ensure correct taxation and avoid fiscal and financial problems. By taking these steps, companies can focus on their long-term growth and success.
For those who want to make the process more agile, reliable and fluid, a trading company is the best alternative. Savixx is one of the largest and most traditional international trade companies in Brazil, and can help businesses from different segments and sizes to import and export products with maximum reliability and security.