EXEMPTION FROM PAYMENT OF VAT, IMPORT DUTY, AND RATE FOR DETERMINATION OF CUSTOMS REGIME

Decree No. 4.220 of May 29, 2020, issued by the President of the Republic, was published in Official Gazette No. 41.890 of May 29, 2020 and published again, due to faults in the originals, in Official Gazette No. 41.896 of June 8, 2020, (the “Decree”). The Decree established that the final importation and sales in the national territory of fuel derived from hydrocarbons, and supplies and additives intended for upgrading the quality of gasoline, made directly by the State, or by State-owned companies, or by mixed companies with State and
private capital participation in any proportion, and by private companies, according to article 58 of the Organic Hydrocarbons Law, are exempt from payment of Value Added Tax, Import Duty, and Rate for Determination of the Customs Regime, and any other tax, rate, or contribution applicable under the current legal system.

In order to enjoy the exemption established in the Decree, at the time of recording their declaration, the beneficiaries must file with the relevant Customs Office, a descriptive list of the corporal personal property to be imported, the commercial invoice issued to the name of the agency or entity in charge of the acquisition of the relevant corporal personal property, and the official letter of exemption of the Import Duty and Rate for Determination of the Regime issued by the National Integrated Service of Customs and Tax Administration (“SENIAT”).

The sales transactions, in the national territory, of fuel derived from hydrocarbons and supplies and additives intended for upgrading the quality of gasoline, made directly by the State, or by State-owned companies, or by mixed companies with State and private capital participation in any proportion, and by private companies, according to article 58 of the Organic Hydrocarbons Law, are exempt from payment of the tax obligation prescribed in the Law of Tax on Large Financial Transactions.

The maximum period of the exemption benefit established in the Decree will be 1 year as from the date of its publication in the Official Gazette.

The Decree became effective upon publication of the same in the Official Gazette.

In order to access the Decree, please click here.

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