VCB’s Official Notice for State and Municipal Tax Administration
An Official Notice of the Venezuelan Central Bank (“VCB”) was published in Official Gazette No. 41.401 of May 21, 2018. Said Notice informed to the state and municipal Tax Administration and to the general public that no method for state and municipal tax withholding may be established through the merchant acquiring services that are used for processing payments with credit, debit, prepaid, and other financing or electronic payment cards through Point-Of-Sale Terminals, without the prior authorization of the VCB; all of the foregoing with the purpose of guaranteeing the normal operation of the payment systems operating in the country, mitigating the risks that may result from the adaptations made in the electronic payment processing systems that impact the efficiency and functionality of the same, and promoting the use of electronic means in commercial transactions.
In this connection, instructions were given to immediately cease the activities of state and municipal tax withholding carried out in the terms indicated above that have not been authorized by the VCB.
In order to access the Official Gazette, 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.”