Você está no Brasil?

[eggheadbooks1]

Hello:

I am doing research on ebook prices and sales tax in Brazil and would greatly appreciate help from someone there. I only need you to look up two ebooks* and tell me what price is displayed on the Amazon and Kobo sites when viewed from a Brazilian ISP. If you can help with this please reply (or message me privately).

Also, it is my understanding that the price displayed in Brazil must include sales tax. Can you confirm this?

Your help is greatly appreciated.

And now in Portuguese via Google translate:

Eu estou fazendo uma pesquisa sobre os preços de e-books e imposto sobre vendas no Brasil e gostaria muito de receber ajuda de alguém lá. Eu só preciso de você para procurar dois ebooks* e me diga o preço é exibido nos sites da Amazon e Kobo, quando vistos a partir de um provedor brasileiro. Se você pode ajudar com isso por favor responda (ou mensagem me privada).

Além disso, é meu entendimento que o preço exibido no Brasil deve incluir imposto sobre vendas. Você pode confirmar isso?

Sua ajuda é muito apreciada.

* http://www.amazon.com.br/The-Global-.../dp/B009N90LFI
http://www.amazon.com.br/dp/B004SHNP8U

On Kobo, if you go here it should redirect you to Kobo Brazil:
http://store.kobobooks.com/en-ca/books/Baby-Jane
http://store.kobobooks.com/en-ca/boo...l-Indie-Author

[Antoinekamel]

Brazilian here
http://www.amazon.com.br/The-Global-.../dp/B009N90LFI R$ 20,83
http://www.amazon.com.br/dp/B004SHNP8U R$ 10,99

On Kobo, if you go here it should redirect you to Kobo Brazil:
http://store.kobobooks.com/en-ca/books/Baby-Jane R$ 11,10
http://store.kobobooks.com/en-ca/boo...l-Indie-Author R$ 22,21

[eggheadbooks1]

Muito obrigado, Antoine!

Does the price include tax? (O preço inclui impostos?)

P.S. How bad are the Google translations?

[Antoinekamel]

You are welcome, egghead.

Every price in Brazil includes taxes, there are no outside taxes here like VAT in another Mercosur contries. (I am a lawyer, post-graduated in tax law).

And although Google Translate worked seamless, I speak English well.

[eggheadbooks1]

Hi Antoine:

Thanks again for replying.

After further digging I found a bit more information: print books in Brazil are tax exempt but eBooks were charged VAT, as were ereading devices. Legal challenges ensued, and resulted in the lower courts ruling that the tax on ebooks was unfair. I could not find any more information about when the courts made that decision, or who brought forward the challenge. Retailers? Publishers? It is also unclear whether the ruling resulted in the suspension of tax on ebooks pending the outcome of the higher court's decision.

In September 2012, the Education, Culture and Sports Committee of the Brazilian Senate approved a bill that would make both ebooks and ereaders tax exempt. The bill was then forwarded to the Senate plenary for approval. In May 2013, the bill was still under review because several parties felt it was inadequate: http://publishnewsbrazil.com/2013/05...al-publishing/.

By September 2013 the bill was still under review. I cannot find any further information.

Do you know:
- who initiated the legal challenge?
- if the higher court has ruled yet?
- was/is tax on ebooks suspended while the court considers/ed its position?
- what the current status of the bill is?

What I have been able to determine by the prices you found is that Amazon and Kobo are not adding tax to the list price set by the publisher, and Amazon are paying royalties based on the list price.

Much thanks.

[Antoinekamel]

Books in Brazil, and the paper used for them, are tax exempt. E-books got the immunity too, they were never charged taxes since their appearing. What we pay when we buy e-books outside is IOF (Imposto obre Operações Financeiras, tax on financial operations), which does not occur on the acquisition of the e-book (which would be unconstitucional), but on the fact that money went from Brazil to some other country. It was 3% last year, but to disencourage Brazilians to spend outside, by a decree it is today nearly 7%.

That bill proposal of e-reader tax cut, as comparing them to books, was part of the subject of my post-graduation study. Abstract:

Spoiler:

ELEMENTS FOR THE TAX IMMUNITY OF ELECTRONIC READERS
Antoine Youssef Kamel

This study aimed to bring the grounds for the inclusion of electronic readers (e-readers) in the tax immunity of books, newspapers, magazines and paper for their printing. We present the features that distinguish e-readers and tablets and the advantages of e-readers over other reading means. We briefly analysed the nature and scope of the constitutional norm to conclude, based on doctrinal and jurisprudential understanding, that e-readers shall be encompassed by the immunity because of its equity to the traditional, printed books.

It is, like the most of bill proposals here (I don't know if in your contry bill proposals are taken more seriously), paused, with no forecast of becoming, one day, voted, much less approved.

In resume, e-books were never charged taxes here, always taken as books and, therefore, with constitucional immunity. (And, anyway, there is no legal prevision for taxes on digital goods, buying Angry Birds on Apple Store is tax exempt too for lack of prevision). But e-readers are charged as a digital device, at least while there are no approved rule in contrary.

[eggheadbooks1]

Ah, now I understand: the tax was not on the ebook but on the purchase transaction. This explains why Amazon opened a Kindle store in Brazil.

Does the IOF apply, then, to purchases of ebooks on, for example, Kobo or Google Play or Apple if they are not registered in Brazil?

How is the IOF charged? Does it appear on the final bill when the consumer finishes the transaction? It seems that the IOF fee does not have to be included in the displayed consumer price -- that is restricted to sales tax, correct?

Thank you for your information. It's been hugely helpful.

[eggheadbooks1]

Hi Antoine:

In recognition of your help, I would like to add a thank you in a footnote in my book with your name and the title of your post-graduate study, ELEMENTS FOR THE TAX IMMUNITY OF ELECTRONIC READERS. If you would like me to do so, please message me privately and provide your real name (I should not assume it is Antoine Kamel), the Portuguese title of your dissertation, and the date of the dissertation. I will email you back details of the publication where the footnote will be found.

[Antoinekamel]

Originally Posted by eggheadbooks1

Ah, now I understand: the tax was not on the ebook but on the purchase transaction. This explains why Amazon opened a Kindle store in Brazil.

Does the IOF apply, then, to purchases of ebooks on, for example, Kobo or Google Play or Apple if they are not registered in Brazil?

How is the IOF charged? Does it appear on the final bill when the consumer finishes the transaction? It seems that the IOF fee does not have to be included in the displayed consumer price -- that is restricted to sales tax, correct?

Thank you for your information. It's been hugely helpful.

You're right. IOF appears directly on the credit card, and is not demonstrated by the vendor anywhere before the sale conclusion. IOF is equally charged by Google Play or Apple Store if they do not receive the money in Brazil (which I suppose is the case).