Exporting goods from Brazil through trading companies has the same tax exemption as a direct export operation.
Such understanding has been recently ruled by Brazilian Supreme Court and has just been converted into legislation by the Brazil’s Internal Revenue Service (IRS).
So the use of trading company structure is again an interesting option for exporters, as in some cases tradings have more leverage in negotiations of large quantities of goods, including agribusiness commodities.
For some time this was a point of uncertaintly given that local courts had different views on this subject matter. But the recent Supreme Court ruling provided legal assurance to taxation on tradings.
This information may impact positively export contracts already in effect, because taxation that used to be considered in the price is no longer due. And, in some cases, the party can even look for reimbursement of that amount before the IRS.