Aje, who runs a business in Brazil, discovered when settling his first order in August 2026 that the amount credited to his account was not only less than the retail price listed on the platform by the amount of the platform commission, but also had an additional tax deduction for something called CBS/IBS. Only then did he realize that Brazil’s tax reform had already taken a tangible toll on sellers’ accounts.

Effective August 1, 2026, Brazil will mandate a split-payment system, and the dual value-added tax regime—CBS (Federal Social Contribution VAT) and IBS (State/Municipal VAT)—will officially take effect. This article clearly explains tax burdens, payment accounts, and compliance pathways for the Brazilian market; it is recommended reading for those new to the Latin American market.

2026 Outlook: The total tax burden for cross-border stores ranges from approximately 20% to 25%; registering a local CNPJ business in Brazil can reduce this to 14% to 18%. The era of tax avoidance through “receiving payments via personal accounts” has come to an end in Brazil.

01

Implementation of Split Payments

Effective August 1, 2026, Meike Duo’s Brazil site will mandate the Split Payment system: For each transaction, sellers’ revenue will be automatically split into “product sales proceeds” and “service fees,” which will be settled and taxed separately.

This means sellers can no longer avoid taxes by receiving payments through personal accounts—they must link their payments to a Brazilian CPF (individual tax ID) or CNPJ (business tax ID) and open a Brazilian bank account; direct withdrawals via SWIFT are not supported.

On the same day, the dual VAT system for CBS and IBS took effect. The total tax burden for cross-border stores is approximately 20% to 25%, while the total tax burden for companies registered with a Brazilian CNPJ can be reduced to 14% to 18%—a significant difference.

02

Three Key Points on Brazil's Tax Reform

First, as of April 1, 2026, Mexico’s SAT has been synchronizing transaction data with Meituan in real time; although Brazil is proceeding at a different pace, the split-payment system makes the platform the withholding agent, significantly narrowing the gray area.

Second, by July 20, 2026, Mercado will complete tax ID verification for all sellers—the entity information, tax ID validity, and holder authorization must all match; if they do not, the seller’s operations will be restricted.

Third, in early 2026, the Brazilian Federal Revenue Service launched an audit targeting shell companies with Chinese ties. A large number of accounts belonging to shell companies—which relied on virtual addresses and lacked procurement documentation—were frozen, and their goods were held up at customs.

If you’re facing a similar situation—wanting to launch on Meituan’s Brazilian site, but unsure about the dual tax system (CBS/IBS) or how to link your CPF/CNPJ, or worried about getting stuck during tax ID verification—we can help you develop a compliance plan for Brazil. Scan the QR code to contact Qicaiying’s online customer service (WeChat/Phone: 18620388671), and we’ll help you sort out the entire process from start to finish.

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03

CPF and CNPJ

CPF is Brazil’s individual tax ID, and CNPJ is Brazil’s corporate tax ID. The payment account for the Brazilian marketplace must be linked to one of these; for business sellers, using a CNPJ results in significantly lower tax costs.

Basic CNPJ Registration Process: Register a limited liability company (Limitada) in Brazil → Apply for a CNPJ with the tax authority → Open a local bank account in Brazil. The process takes several weeks and requires a local registered address and an accountant.

Tip: Local CNPJ companies not only benefit from lower taxes but also enjoy lower commissions and better search rankings. For monthly sales exceeding $20,000, local companies are often a more cost-effective option than cross-border direct shipping.

04

How is the tax burden calculated?

The cumulative taxes and fees for direct cross-border shipping to Brazil are staggering: Import Tax II (0% to 35%) + Industrial Products Tax (IPI) (0% to 300%) + State Value-Added Tax (ICMS) (17% to 19%) + PIS/COFINS (approximately 9%); the total can reach 30% or even higher.

Platform withholding is merely an advance payment: After registering for a local tax ID, you can file an annual tax settlement based on actual profits, with any overpayment refunded and any underpayment collected; the same applies in Brazil, where local companies file income tax returns based on their profits.

Conclusion: It’s not that selling in Brazil is impossible—it’s that “localization and compliance” are essential. You should either set up a local store on Mercado Libre or use official logistics or overseas warehouses to handle customs clearance and taxes; trying to shoulder the costs of direct shipping on your own is extremely uneconomical.

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05

How to Get Off to a Steady Start

First, link your tax ID: For the Brazilian marketplace, make sure you have a CPF or CNPJ ready—don’t rely on personal accounts for receiving payments. Second, choose a business model: If your monthly sales are high, register a local company to reduce your tax burden; if you’re a beginner, start by testing the waters with a cross-border store.

Third, hire an agent: Brazilian tax filing, NFe invoices, and authorized representatives are major hurdles; the annual fee for a professional agent is in the range of several thousand dollars, which is cheaper than the fines for account suspension. Fourth, stay informed about policy changes: 2026 is the transition period for Brazil’s tax reform, so be sure to set aside space for tax fields in advance.

In a nutshell: The key to success at the 2026 Brazil event is “tax ID + local bank account + compliant filing.” The blue ocean is still there, but the days of indiscriminate inventory expansion are over.

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