Sales or Value added tax (VAT)
With Dotted's group buying model, customers benefit from inheriting Dotted's tax settings, which offers distinct advantages.
By procuring AWS services through Dotted-Brazil, a São Paulo-incorporated entity, customers are required to pay sales tax or VAT on digital goods or Platform as a Service, such as AWS. Consequently, customers' tax settings are automatically adjusted to the standard rate of 13.83%, as established for AWS services in Brazil, as specified in the link https://aws.amazon.com/pt/tax-help/Brazil.
This benefits all customers, regardless of their location, who were previously responsible for manually collecting sales tax or VAT. Moving forward, all invoices will already include the taxes, simplifying the payment process.
U.S. Import Tax on Digital Services — When AWS services are procured directly from the United States into Brazil — without an intermediary established in Brazil — they are subject to importation tax on services (“Imposto de Importação de Serviços Digitais”). This import tax is composed of multiple federal and municipal levies that can significantly increase the total cost of the service:
Tax Component
Approximate Rate
ISS (Imposto Sobre Serviços)
2% – 5%
IOF (Operações Financeiras)
3.5% (raised on July 2025)
PIS/COFINS-Importação
~9.25%
CIDE (applied to tech/royalties)
~10% (when applicable)
IRRF (Income Tax Withheld at Source)
Up to 15%
Depending on the service classification and local regulations, the cumulative tax burden may reach or exceed ~50% over the base value of the imported service.
To manage and automate compliance with these taxes, our distributor (Ingram) — when operating in this direct-import model — applies a flat surcharge of 45% on the AWS Marketplace service value. This surcharge is applied directly on the invoice to cover the full tax obligation, avoiding delays and ensuring regulatory compliance for the Brazilian customer.
This mechanism allows clients to:
Avoid the complexities of manually declaring and remitting federal/municipal import taxes.
Ensure compliance with Receita Federal and local tax authorities.
Receive invoices with all tax responsibilities pre-calculated and included.
For cost predictability and tax simplicity, customers are strongly encouraged to procure AWS services via Dotted-Brazil when possible, which avoids the service import model entirely and applies the fixed 13.83% domestic tax rate instead of the ~50% import burden.
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