- State entities and companies mentioned in the Official Gazette will be able to import “corporate movable goods” without paying VAT until the end of August
The Venezuelan State has extended until August 31 the exemption from taxes on imports by companies and public administration entities in Venezuela; the measure came into effect on July 1.
The extension was published in the extraordinary Official Gazette number 6,818, dated June 28, 2024. The measure does not present any modification in relation to decree number 4,907, published in December 2023.
What does this tax exemption consist of?
The decree states that there is a certain group of imported goods that will be exempt from paying value-added tax (VAT) and import duties. The text details that the items that might be exempt from these tax obligations are only those that fall into the categories of “new or used tangible personal property.”
VAT in Venezuela
The Value Added Tax is 16% of the retail price of each product, according to the provisions of Seniat.
The codes of the products that are within these exemptions and the comments on how the information should be presented to formalize the importation of the goods can be consulted in the appendix of the Official Gazette.
The list of exempt goods has more than 1,500 codes and includes products such as stainless steel wire rod with a height greater than or equal to 80 millimetres (code 7222.40.10.00), scales and balances for continuous weighing on conveyors (8423.20.00.00) and pressure reducing valves (8481.10.00.00).
However, the codes of the exempt products are subject to the correlation tables that the Ministry has prepared for such purposes. National Integrated Customs and Tax Administration Service (Seniat).
The type of company importing the goods also influences the application of this measure, which varies between a total or partial exemption if the goods are imported by a public administration entity with national production capacity.
Types of exemptions
Finished movable property will have a total exemption from taxes If they are imported by public companies without national production capacity, they must have a Certificate of Non-National Production or a Certificate of Insufficient National Production. If these documents are not available, the exemption will be 90%.
The institutions that have the benefit of total tax exemption for importing movable goods are: the Venezuelan Corporation of Guayana (CVG), the Ministry of Water Services, the Socialist Cement Corporation (CSC) and the Venezuelan Corporation of Foreign Trade (Corpovex).
According to the Official Gazette, companies are subject to losing the exemption benefit if they fail to comply with the requested requirements, if they do not provide the customs authorities with the required information on the import or if they lie in the declaration of the imported goods.
Likewise, those who fail to comply with the periodic evaluation established in articles 16 and 17 of decree 4,907, published in December 2023, may lose the benefit. They must also comply with the parameters dictated by Seniat for said evaluations.
On a monthly basis, Seniat must send to the Ministry of Economy, Finance and Foreign Trade a record of all imports that benefit from tax exemption.
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2024-07-09 16:52:26
