The fast growth of electronic commerce in Brazil led to a billion dollar tax war between the Member for payment of taxes on those sales. Under the constitution, the Tax on Circulation of Goods and Services (ICMS) is collected at the site where the product is shipped - at the distribution center network - which is not necessarily the state where the property was purchased. Only Bahia and Mato Grosso estimate could lose $ 400 million in revenue a year on purchases made online.

The richest states concentrate the main distribution centers in the country and therefore the collection of VAT. Others with smaller economies, such as the Tocantins, through agreements reduced the tax rate to attract distribution centers of business and accelerate the local economy. The other states complain about the loss of revenue and lower economic pace with the transfer of local sales in the region for electronic media.

That is, the guy who buys a book by the computer in your home may be getting it from the neighboring state instead of their own. So at least Bahia, Mato Grosso, Piauí and Ceará has imposed surcharges to ICMS of products coming out. Other states assess a decision, especially in the Northeast.

The argument is that a state that reduces sales tax revenues steals the other, for whom there is no alternative but to retaliate. The dispute has landed in the Supreme Court (STF), where the Order of Lawyers of Brazil (OAB) has filed a direct action of unconstitutionality (Adin) against Piauí. The OAB want to make the Supreme declare the unconstitutionality of the norm Piauí determined that the increased collection of VAT on products that come from out of state.