Brazil Federal District Court Upholds ICMS Tax on Bulk Phone Purchases

The 2nd Recursal Panel of Special Courts in Brazil's Federal District confirmed an ICMS tax assessment against a consumer who bought 14 mobile phones, ruling that the volume indicated commercial intent. The court rejected the taxpayer's appeal, stating the burden of proof lies with the taxpayer to demonstrate the lack of a taxable activity. It affirmed the legality of the administrative fine, finding no evidence of confiscatory measures.

The decision reinforces the district's interpretation that individuals who acquire goods in quantities incompatible with personal use are liable for the state sales tax, and highlights the presumption of legality for administrative acts unless robust contrary evidence is presented.