Final importation of goods exempt from VAT payment
Decree No. 694, issued by the President of the Republic (the “Decree”), was published in Official Gazette No. 40,337 of January 20, 2014. According to said Decree, the final importation of moveable capital goods, information technology and telecommunications goods, their pieces, parts, and accessories, not produced or with insufficient production in the country, of first use, identified as BK or BIT in columns three (3), four (4), five (5), or six (6) of article 40 of the Schedule of Customs Duties, will be exempt from payment of Value Added Tax (“VAT”) and applied the two percent (2%) or zero percent (0%) ad valorem rate, as appropriate, in the terms and conditions established in the Decree.
Also, according to the Decree, the final importation of corporeal personal property intended for the manufacturing and/or construction industry, installed or to be installed in the national territory, will be exempt from VAT payment.
The Decree contains lists of the goods the final importation of which is exempt from VAT.
The maximum period of duration of the benefit of exemption established in the Decree is of three (3) years as from the date of its entry into force. The Decree became effective upon its publication in the Official Gazette.
In order to access the Decree, please click here.
“NOTE: THIS INFORMATION SHOULD NOT BE CONSTRUED AS LEGAL ADVICE ON ANY SPECIFIC MATTER AND ITS CONTENT ARE INTENDED AS A MANAGEMENT ALERT AS TO CURRENT DEVELOPMENTS IN VENEZUELA, ANY SPECIFIC LEGAL QUESTIONS REGARDING THE POSSIBLE APPLICATION OF NEW OR PROPOSED LEGISLATION TO PARTICULAR SITUATIONS SHOULD BE ADDRESSED TO TRAVIESO EVANS ARRIA RENGEL & PAZ.”