A ruling by the 2nd Federal Court of Barueri upheld a publisher's request to be exempt from collecting the Contribution on Goods and Services (CBS) on the Elo Monsters card collection, a product launched in partnership with YouTuber Enaldo Lopes (Enaldinho), who makes videos aimed at children.
The ruling also recognized the application of the zero PIS/Cofins tax rate until the CBS (Contribution on Goods and Services) officially comes into effect. Federal Judge Marilaine Almeida Santos, who signed the decision, understood that cards are equivalent to books and, therefore, should be treated under the same tax regime (exemption or zero rate).
Law 10.865/04 reduced to zero the rates of the PIS/Pasep and Cofins contributions levied on gross revenue from the sale of books in the Brazilian market. Seeking the same effect, Complementary Law 214/2025, which regulated the tax reform, stated that the supply of books, newspapers, and paper intended for their printing are exempt from CBS and the Tax on Goods and Services (IBS).
In analyzing the publisher's request, Judge Marilaine Almeida Santos cited precedents from the Supreme Federal Court (STF) and the Regional Federal Court of the 3rd Region (TRF3) which, according to her, established the principle that "the immunity of books is not restricted to the traditional physical medium, but should extend to any means that perform the same function of disseminating knowledge and culture.".
Immunity is a constitutional principle that prevents the creation of taxes on books. Although PIS and Cofins are not considered taxes, but rather contributions, the equivalence also applies for this purpose, according to Santos, since the legislation itself (Law 10.865/04) provided for a zero rate of PIS and Cofins levied on books or newspapers.
The First Panel of the STF also decided in a recent action (ARE 1591031) that collectible cards used in strategy games can be equated to books for the purposes of tax immunity and the application of the zero PIS/Cofins rate.
According to Alexandre Herlin, a partner in the Tax area of Ciari Moreira Advogados, responsible for the lawsuit, the decision involving Elo Monsters cards is important because it endorses the reduction to zero of the tax rates on collectible cards also for the case of CBS, established by the tax reform and which is still in the testing phase.
“The judge understood that this interpretation already applies to CBS, which is the new tax that will come into effect. This is very interesting because it means that the courts are applying the same understanding currently established in the Supreme Federal Court to the new taxes. And, at least as far as I know, it is the first or one of the first decisions that addresses this,” he stated.
In the São Paulo State Court, there is also a lawsuit discussing the exemption from IBS collection, which replaces ICMS (state tax) and ISS (municipal tax). A ruling has not yet been issued. However, in November of last year, Judge Luiza Barros Rozas Verotti, of the 13th Public Treasury Court of the São Paulo Court of Justice (TJSP), granted an injunction ordering the State Treasury and the IBS Management Committee to refrain from "demanding ICMS or IBS on the sale of 'Elo Monsters' collectible cards until the merits of the case are judged.".
The lawsuit concerning the Elo Monsters in the Federal Court has the number 5002831-35.2025.4.03.6144.
Source: JOTA