Supreme Court grants tax exemption to electronic books and readers

The Brazilian Supreme Court decided this Wednesday (Mar. 8) to grant tax exemption on electronic books, the so-called e-books. The justices have unanimously ruled to extend the benefit, which is already granted to printed books and newspapers, to electronic media. According to the Brazilian Constitution, the federal and state governments are prohibited from collecting taxes on books, newspapers, journals, and printing paper.

The court's decision also covers e-book readers, known as e-readers. The justices considered an appeal filed by the Rio de Janeiro state government against a state court ruling, which granted exemption to a legal encyclopaedia stored on a digital CD.

The court's ruling settles several court's disagreements on the possibility of the tax exemption on e-books. The justices' understanding should be applied to more than 50 actions that were waiting for the court's position on the subject.

Translated by Amarílis Anchieta