Brazil ruling on tax treatment of 3D printing could have global implications

3D printing classified as a manufacturing process means some retailers are liable for IPI excise tax

The International Tax Review reports that a tax ruling issued by the Brazilian Federal Revenue Service on whether 3D printing should be classified as a manufacturing process for a business could mean retailers are liable for excise taxes. These are indirect taxes on the sale of a particular good or service such as fuel, tobacco and alcohol. Indirect means the tax is not directly paid by an individual consumer — instead, the Internal Revenue Service (IRS) levies the tax on the producer or merchant, who passes it onto the consumer by including it in the product’s price.

The growth of the digital economy is the result of transformative processes brought about by information and communication technology (ICT) and is changing business models. This is very important from a tax perspective. and can have implications all over the world. In fact, Because of this, the OECD issued BEPS (Base Erosion and Profit Shifting) Action 1, which deals with the tax challenges of the digital economy. The Organisation for Economic Co-operation and Development (OECD) promotes policies that seek to improve the economic and social well-being of people around the world. It provides a forum in which governments can work together to share experiences and seek solutions to common problems.

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