In the case of Brazil it's mainly due to our absurd import taxes.
Looking at AWS site it explains that PIS/COFINS and ISS are charged, excerpt below:
"AWS SBL can issue an NFS-e to a Bra zilian customer only after receiving a valid Tax Registration Number ("TRN") (i.e., CPF/CNPJ). The relevant taxes applicable to AWS cloud services offered locally are the following: PIS and COFINS (9.25%, combined rate) and ISS (2.9%, charged by São Paulo municipality)."
https://aws.amazon.com/tax-help/Brazil/
This is below 15% which many countries do tax for cloud services.
I'm not saying that Brazilian taxes are really high, they are for hardware imports, but the taxes into the service itself does seem "fair".
It's ridiculously expensive.
Very little hardware is produced domestically, and the little that is, you don't want to be running your switches on what is in essence a no-name "intelbras" brand.
1. AINAL, so I might say legal matters wrong for not understanding completely how the tax law works in Brazil, (Tho I do like to search about it), but I might find someone who could help you guys with it.
2. Currently, there is a law already approved (now being regulated with complementary acts) about how taxes will change in Brazil to the VAT model, this could increase/decrease taxes for a service like yours.
Besides these 2 points, we could talk via email (xunjin.coder@gmail.com) to might find a way like AWS did, creating a Brazilian subsidiary, to be able to generate NF-e in accordance for each valid Brazilian Tax Registration Number (CPF/CNPJ) and issue the invoices in BRL.
This page https://aws.amazon.com/legal/aws-sbl/ could have more info to elucidate how AWS does.
PS: Life is sometimes a funny coincidence. My brother, who is a State attorney where I live, called me to share private matters 20 minutes ago, and already asked him for some help/directions about it. This weekend, I will speak to him in our spare time about it.