AWS Announces Billing in Reais in Brazil
See the Financial and Tax questions you should (would) have
On September 02, 2020: AWS Announces Billing in Reais in Brazil! AWS announced that it will bill all customers in Brazil in reais and with an invoice issued and taxed in the country.
This move was expected and came long after other tech giants had followed suit. Many questions will still need to be answered, some of them will only be clarified when the invoicing in the country actually starts in December, others are already on the company's website and some have not even been imagined by the companies.
The beginning of the issuance of invoices in the country in December, against companies that, in many cases, did not pay all taxes, can expose these companies immediately, creating the risk that the last 5 years of payments, if not taxed, may be questioned by the Federal Revenue Service of Brazil.
Webinar available on YouTube: AWS Announces Billing in Reais in Brazil – Financial and Tax Questions You Should(Would) Have
We prepared a Webinar to alert companies about some questions that need to be made internally and others that need observation regarding the conversion values from dollars to reais, since the company's website says that “Exchange rates are in line with market rates published by major financial institutions and are subject to market fluctuations”.
WEBINAR “AWS Announces Billing in Reais in Brazil” CLICK HERE!
AWS Announces Billing in Reais in Brazil: What will be the Exchange Rate used by AWS to convert dollars to reais? The Central Bank PTAX rate or the Dollar practiced by Commercial Banks?
Depending on which “financial institutions” the note is talking about, there may be a substantial difference in the conversion rate, since the official rate for reference and conversion to reais is usually the rate of the Central Bank of Brazil and not those practiced by financial institutions. . It is worth remembering that Brazil is one of the countries with the largest Spread on the planet.
VIDEO ON YOUR WHATSAPP “AWS Announces Billing in Reais in Brazil”
Another FAQ answer cites that: “For some currencies, additional rules may apply depending on local factors such as regulatory requirements”. It will be necessary to verify on the billing date in reais, what was the rate charged on your invoice and compare it both with the official rate of BACEN and with that practiced on that date by the national exchange market.
What will be the tax passed on by AWS to its customers on billing in reais in Brazil?
The company's website says: “The total value of the service indicated in the NFS-e already includes all taxes applicable to the local provision of AWS services.”
AWS Announces Billing in Reais in Brazil, The question is: will only convert dollars into reais, without add taxes? Will all country taxes be absorbed by AWS? How much will be absorbed and how much will be passed on?
These questions will certainly be better answered later on, no later than December 2020, but until then many questions will arise from customers who pay today through the most diverse means available.
It is worth remembering that, today, the means of payment directly interferes with the final tax cost. Customers who pay via credit card pay 6.38% of IOF, while those who pay via exchange the same tax has a rate of 0.38%.
However, customers who pay via exchange are required by banks to collect the Income Tax at source at the time of remittance, while customers who pay via card should calculate the tax on their own, issue the payment slip and make the payment. This process is neglected by most customers who pay via card.
AWS Announces Billing in Reais in Brazil: Now Will My Bill Be More Expensive or Cheaper?
First, it depends, as it always did, on the dollar, as the invoice will still be originally in dollars and converted to reais always on the day of issuance of the invoice. If we are “lucky” that the dollar is low on the day of invoicing, great, otherwise…
For customers who already pay all taxes levied on the current invoice (more than 40%), the cost will most likely decrease.
For customers who do not pay taxes properly, there are two problems:
- If AWS passes on all or part of local taxes, the cost will likely increase
- As AWS will automatically issue an Invoice against Brazilian companies, it will also automatically “deliver” to the Brazilian tax authorities the list of companies that already “imported” the company's service, but did not collect the taxes for the tax authorities.
AWS Announces Billing in Reais in Brazil: How can I simulate the financial and tax cost of my bill?
We created a simulator where you can inform the amounts paid on your last invoice and receive the results and calculations on your whatsapp. And right there you can talk to our experts if you have any questions.
AWS Announces Billing in Reais in Brazil: See the full statement that customers began to receive in September announcing the migration of billing from AWS to AWS SBL in Reais in Brazil:
“Dear Amazon Web Services Customer,
On November 1, 2020, AWS will launch Amazon AWS Serviços Brasil Ltda. (AWS SBL) to act in Brazil as a local entity to provide AWS services and billing for Brazilian customers. On that date, all accounts that provide a CPF or CNPJ number will receive services locally from AWS SBL.
What should you do to prepare
If you are an individual, go to the Tax Settings page of the AWS Billing Dashboard and enter your Social Security number.
If you are a business or government entity, go to the Tax Settings page of the AWS Billing Dashboard and enter your CNPJ number.
how does it affect you
Invoices will be issued in Brazilian Reais (R$), while services provided by AWS SBL will remain priced in United States Dollars (USD).
Real (R$) will be the only accepted payment currency.
Your Agreement with AWS, or other agreement with us that governs your use of AWS services, will be updated to replace Amazon Web Services, Inc. by Amazon AWS Serviços Brasil Ltda. as your service provider for Brazilian customer accounts. The AWS Agreement will be updated to reflect this change and your continued use of AWS services after the change will constitute your acceptance of the new agreement.
In addition to your existing commercial invoice/payment request, you will now receive an electronic service invoice (NFS-e), and the service price indicated on the NFS-e will already contain all applicable local service-related taxes. You can make payment based on commercial invoice/payment request or NFS-e. In addition to the NFS-e, you will also receive a supplemental document that will contain details of your charges for the services purchased.
The payment method for invoices will be limited to available electronic transfer (TED). Please update your payment instructions based on the details that will be provided shortly.
Card payment methods will be limited to national and international Visa, MasterCard, American Express and Elo credit cards. Elo credit cards will only be accepted after November 1, 2020. Direct debit (ACH and SEPA) and debit cards will no longer be accepted after November 1, 2020. Please update your payment method accordingly. If you purchase services from AWS sellers outside of your region, make sure your default payment method supports international transactions.
All AWS services will continue to be available during this change. Your content, settings, access rights and security settings will remain the same. Please note that your October invoice (issued in November) will still be issued by Amazon Web Services, Inc.
We have prepared, and will be regularly updating, a list of frequently asked questions (FAQs), located here.
If you have additional questions after checking our FAQ, please contact Customer Support.
If you would like to review and/or update your account tax information, please review your Tax Settings here.
Yours sincerely,
Amazon Web Services Team!
AWS Announces Billing in Reais in Brazil: See the company's website with General Questions about migrating billing from AWS USA to AWS SBL in Reais in Brazil:
1. What is Amazon Serviços Brasil Ltda. (AWS SBL)?
As of November 1, 2020, Amazon AWS Serviços Brasil Ltda. (AWS SBL) operates in Brazil as a local entity to provide AWS services and invoicing for Brazilian customers. For more information on the affected accounts, see question #2. This change will be reflected in your AWS Agreement.
2. Which of my AWS accounts will be affected?
Any account that has a valid CPF/CNPJ number will be affected by this change. If you have a CPF/CNPJ number, go to the Tax Settings page of the AWS Billing Dashboard, enter your CPF/CNPJ number, and confirm/update your address information for all accounts. For more information about Organizations with linked accounts in multiple countries, see question #26.
3. Why is AWS releasing AWS SBL?
We are constantly updating our business structure to ensure the best service to our customers. We are launching AWS SBL to allow Brazilian customers to purchase AWS services from a local entity and pay for AWS services in Brazilian Reais (“R$”). With the launch of AWS SBL, the cost of acquiring AWS services will be reduced and new forms of payment will be provided, such as local credit cards and Elo brand.
4. When will AWS SBL be released?
AWS SBL launches November 1, 2020. Stay tuned for AWS SBL related emails for updated information as we get closer to launch!
5. When will I receive my first AWS SBL invoice?
You will receive your first AWS SBL invoice in December 2020 for your November 2020 usage. Please note that your October 2020 invoice (issued in November 2020) will still be issued by Amazon Web Services, Inc. You will receive all invoices for subscriptions incurred from November 1, 2020 onwards on the day you purchase the AWS service(s).
6. Will my access to AWS services change? Will there be a service downtime?
No, there will be no changes to the services. You will be able to continue to use the same services you use today. Your account number, content, settings, access rights and security settings will remain the same.
7. What will change with this new experience?
f. AWS SBL will issue a service invoice (NFS-e) in reais. However, pricing for AWS services will remain in US dollars (USD). See FAQ #14 for more details.
g. The Real will be the only payment currency.
H. The AWS Customer Agreement, or other agreement governing services purchased from AWS, will be updated to replace Amazon Web Services, Inc. by Amazon Serviços Brasil Ltda. as the AWS service provider in Brazil. Before launch, the AWS Customer Agreement will be updated to reflect this change and your continued use of AWS services after the change will constitute your acceptance of the new agreement. Make sure you have entered the CPF/CNPJ number on the Tax Settings page for each account.
i. For customers who pay by invoice, only electronic transfer (TED) will be available. Payment instructions will appear on the invoice.
j. Invoices will include local taxes on all service charges.
AWS Announces Billing in Reais in Brazil: Questions about billing, payment and shipping
8. What billing documents should I expect?
AWS SBL's Brazilian customers will receive the following documents described below: (i) RFP; (ii) NFS-e; and (iii) supplemental billing information document.
Accounts identified as primary (paying) will continue to receive a request for payment (RFP) for monthly usage and any new service purchases you make on AWS. In addition, AWS SBL will generate an Electronic Service Invoice (NFS-e), with the total amount charged for the service on NFS-e already including all applicable taxes. To ensure correct billing by AWS SBL, please enter a valid CPF/CNPJ number in your tax settings and also verify that the other account details are correct. If you have multiple AWS accounts under a single primary (paying) account, and unless you enable tax inheritance, you will need to verify and capture the tax settings for all your AWS accounts. The absence of any of this information will imply in the impossibility of generating NFS-e by AWS SBL.
The RFP issued by AWS SBL may indicate one or more NFS-e, depending on the number of CNPJs you configure in the console. For example, if you have a paying account with a linked account, both with the same CNPJ number, you will receive a single NFS-e for the full use of the period. If your accounts have different CNPJ numbers, you will receive NFS-es that correspond to each CNPJ. In addition, the services you purchase from AWS can also influence the number of NFS-e you receive. For example, if you have a paying account with a linked account, each with its own CNPJ, and you are using AWS Storage and AWS Support, which map to different service codes, you will receive four NFS-es. – one for each service and one for each CNPJ.
The RFP will help you to see the total invoice from the perspective of the main (paying) account and the allocation for each account and for each contracted service, consolidating the information from the generated NFS-es. To help customers with a complex account structure, receiving multiple NFS-es that group different accounts and services together, we produce a supplemental billing information document for each NFS-e, which shows the breakdown of all charges for accounts and services. The supplemental information document will be available in Portuguese.
If you are part of an organization, please note that invoices will be consolidated when possible, for all accounts within the organization. See question #26 for more information about organizations with linked accounts in different countries; Question #29 for more information on AWS Marketplace invoices; and question #30 for telecom service bills.
9. What payment currencies and payment methods does AWS SBL support?
AWS pricing will remain in USD across all AWS consoles. However, Real is the only currency accepted for payments to AWS SBL. All payments must be sent in Reais from a Brazilian bank. See question #12 for more details on the exchange rate used for billing.
AWS SBL will only accept domestic and international credit cards such as Visa, Mastercard, American Express and ELO, as well as payments by available electronic transfer (TED). Payment by boleto is currently not supported. Payment options that use direct debit will no longer be available to customers as they allow payments in foreign currencies.
See question #14 for more information on what currency the prices are based on; question #29 for more information on AWS Marketplace; and question #26 for more information about organizations with linked accounts in different countries.
10. I pay for my AWS services through a bank account. Is there anything I need to do?
Check that you and your Accounts Payable department, or the person responsible for making payments on your accounts, are prepared to make payments in reais. A local bank account is required to be able to make payments to a bank account in Brazil in Reais, or to verify that any existing purchase orders will cover usage charged by AWS SBL.
We'll keep you posted on new shipping instructions as we get closer to the launch of AWS SBL.
11. I pay for my AWS services by credit card or direct debit. Is there anything I need to do?
For credit card payments, you will now be able to use local credit cards such as ELO, in addition to international and national credit cards such as Visa, Mastercard and American Express. Diner's Club and Discover credit cards will not be accepted by AWS SBL. Direct debit will also not be available to customers as it allows payments in foreign currencies. If you are using any of these unsupported payment methods, please upgrade to a valid payment method until release.
12. What exchange rate (USD/Real) is being used for billing?
AWS service prices are in USD. However, AWS SBL will bill these charges in Reais. AWS SBL determines the invoice amount based on the exchange rate in effect at the time the invoice is created.
13. Where can I find the payment submission details?
Wire transfer details can be found in the RFP, NFS-e and the supplemental billing information document. If you need help locating the information, please open a question and our Customer Support team will be happy to help.
14. How does AWS price its services?
AWS prices its services in US Dollars (USD) and converts those prices to local currencies based on the exchange rates determined when the invoice is generated.
15. How does AWS calculate exchange rates?
AWS determines exchange rates on the day the invoice is generated. Exchange rates are in line with market rates published by major financial institutions and are subject to market fluctuations. For some currencies, additional rules may apply depending on local factors such as regulatory requirements
16. Where can customers see the exchange rates used by AWS?
AWS invoices will display the amount in US dollars (USD), the amount in local currency, and the exchange rate used to convert. Customers can find invoices in their AWS accounts.
17. Can AWS notify customers of the exchange rate change in advance?
Not. Exchange rates are determined on the day the invoice is generated. AWS cannot anticipate and communicate changes in non-US dollar prices in advance due to currency fluctuations.
18. Can AWS customize the exchange rate calculation if customers request it?
AWS uses the same exchange rate calculation for all customers who pay in a certain currency. We cannot customize exchange rates for customers.
19. Does AWS offer any discount on exchange rates?
AWS does not use exchange rates as a discount mechanism. For discount-related questions, customers can contact their AWS sales team representative.
AWS Announces Billing in Reais in Brazil tax issues
20. Will my tax experience change when AWS SBL charges me?
Yup. Until then, Brazilian customers had to pay various taxes directly to the Brazilian government; however, with the launch of AWS SBL, our Brazilian customers will begin to receive NFS-e as a result of the local provision of AWS services. The total value of the service indicated in the NFS-e already includes all taxes applicable to the local provision of AWS services. Check if your tax settings are updated with the correct details to ensure proper billing by AWS SBL.
21. If I update my data to be served by AWS SBL mid-month, how will local taxes be calculated?
AWS uses the most recent billing information that you have provided to us to calculate applicable taxes at the time an invoice is generated. Subscription purchases such as Reserved Instances, Domain Names or Savings Plans will be billed at the time of purchase. Your regular monthly usage of other services will be billed around the fourth day of the month following usage, based on the tax address reflected on that date. So check your tax settings to ensure your account information is correct so that invoices reflect the correct details.
22. What can I do to prepare for the AWS SBL release?
Go to the Tax Settings page of the AWS Billing Dashboard and enter your CPF/CNPJ number. See question #23 for more details.
Also verify that your Accounts Payable department or the person responsible for making payments on your accounts is aware of this posting and ready to make the payment to the AWS SBL in Reais. This may include updating records in billing systems, opening purchase orders or verifying that your bank can pay to a Brazilian bank account. We'll keep you posted on new payment instructions as we get closer to the launch of AWS SBL.
To ensure proper billing and to receive release notifications or updates, please make sure your other account details are also up to date. We recommend that you make sure the following items are up to date for each of your AWS accounts:
23. How do I update my Tax Settings for AWS SBL?
AWS SBL will accept CNPJ in 14-digit format for business accounts and CPF in 11-digit format for personal accounts. Add your CPF/CNPJ to your Brazilian account(s) on the page tax settings on the AWS Billing Dashboard. If you are the owner of a primary (paying) account for an organization, you can edit the tax settings for all member (linked) accounts based in Brazil. If all accounts in your organization share the same tax registration number, consider enable Inheritance from fiscal settings.
24. How do I update a Purchase Order?
You can access the Purchase Orders (PO) feature in the Billing Console to update PO information. You may choose to add separate PO(s) for the Brazil seller or continue using your existing PO(s). See the section on managing purchase orders (link) in the AWS Billing and Cost Management User Guide.
AWS Announces Billing in Reais in Brazil: Distributor and customer questions about consolidated billing.
25. My account is an organization's primary (paying) account (consolidated billing). How can I verify that all my (linked) member accounts have the correct address and tax information?
Master (paying) account owners can see the tax address and corresponding AWS entity associated with each account by going to the tax settings on the AWS Billing Dashboard. If you are the owner of a primary (paying) account for an organization, you can edit the tax settings for all member (linked) accounts based in Brazil. The far right column will indicate the AWS entity for each account (eg AWS Inc., AWS EMEA SARL or AWS SBL). If all accounts in your organization share the same CNPJ, consider enable Inheritance from tax settings, as this will save time and ensure that this tax information is applied even when accounts are consolidated or leave your organization.
26. My account is the main (paying) account of an organization (consolidated billing) and I have member (linked) accounts based in different countries, what should I expect?
AWS will determine the appropriate AWS entity (e.g. AWS, Inc. or AWS SBL) for each individual account based on the account location. If you have member (linked) accounts serviced by different entities, you will receive separate commercial invoices or requests for payment (RFPs) from the applicable entity, based on the location of each account. Please note that you will be required to separately pay for invoices or RFPs from different entities in the currency displayed on the applicable invoice.
You will only be able to pay in Brazilian Real for accounts serviced by AWS SBL. All invoices or payment requests from AWS ZA, AWS, Inc. or AWS Europe will use their corresponding currency as defined on the page My account on the AWS Billing Dashboard. AWS Marketplace invoices will be billed in USD by AWS, Inc.
Each AWS entity will have its own shipping instructions on the invoice or RFP. Payment must be submitted in the currency shown on the applicable invoice for the applicable entity.
27. I am a Solution Provider Partner. How does AWS SBL affect me?
As a solution provider, follow operational guidance to apply your own tax settings to all of your linked accounts. You must enable Inheritance from tax settings on the page tax settings, on the AWS Billing Dashboard, to ensure your tax details are used for all your linked accounts. By ensuring that your own information is on all linked accounts, AWS can calculate local taxes correctly, if applicable.
Contact your Partner Development Manager (PDM) directly to determine if the AWS SBL release affects your accounts. You can find the PDM contact details by logging into APN Partner Center.
28. I am an Enterprise/EDP customer. How does AWS SBL affect me?
Please contact your account manager directly to determine if the AWS SBL release affects your account(s). Use the sales contact form if you're not sure who to contact on your account team.
AWS Announces Billing in Reais in Brazil: additional questions
29. What happens to my AWS Marketplace services?
There are no changes to the services you purchase through AWS Marketplace. These services will continue to be provided by AWS, Inc. and billed in US dollars (USD). You will need to maintain your systems and processes for paying AWS, Inc. in USD for all AWS Marketplace purchases. If you also receive an invoice from AWS SBL regarding your use of AWS services for the same billing period, you will need to make two payments: one in USD to AWS, Inc. for your Marketplace purchases and one in Reais for AWS SBL for AWS services.
30. What services are still being offered by AWSI?
Certain services provided by AWS and classified as telecommunications services will continue to be provided and billed by AWSI.
31. What happens to existing Savings Plans/Reserved Instances?
Existing balances related to Reserved Instance and Savings Plan purchases will not be moved to AWS SBL. These balances can only be used to purchase services from AWSI (see question #30 for services provided by AWSI).
32. I have more questions, who can I talk to?
We will continue to update these FAQs with more information as we get closer to the release of AWS SBL. In the meantime, if you have additional questions, please open a support question, and our customer support team will be happy to help.
AWS Announces Billing in Reais in Brazil:
Full text taken from:
https://aws.amazon.com/pt/legal/aws-sbl/#PORTUGESE
We recommend always checking the company's website for the most up-to-date information.
