Brazil Peugeot internet sales of cars exempt from VAT ICMS

The Brazilian tax court had ruled that online sales of cars directly to consumers by manufacturers is not liable to Brazilian VAT ICMS charge.

Peugeot Citroen had been selling its cars through its Brazilian website, cutting out car distribution companies.  Whilst sales through distributors is subject to ICMS, Peugeot argued that since the supply of the agent was removed via the website, ICMS was not due on internet sales.

The Sao Paulo court has agreed with this position.