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Exemption from VAT for imports of corporeal goods intended for the agricultural sector

Decree No. 2.784, issued by the President of the Republic, was published in Official Gazette No. 41.122.  of March 27, 2017 (the “Decree). Said Decree exempts from the payment of Value Added Tax and Import Duties and Rate for determination of customs regime the final imports of new or used corporeal goods made by the Agencies and Entities of the Public Administration, as well as by natural and legal persons and associations of producers, intended for the agricultural sector and specified in the Decree.

 

According to the Decree, the sales of corporeal goods, consumables, and raw material intended for the manufacture of machinery, equipment, and implements for agricultural use will be also exempt from the Value Added Tax if the acquirers of the same are companies engaged in industrial metallurgical activities in the country. Said companies must send monthly information about the acquisitions to the Ministry of the Popular Power for Productive Agriculture and Lands.

 

Said exemption will be applicable if the Minister issues a favorable pronouncement on the previous request from the Agencies and Entities of the Public Administration, as well as from the natural and legal persons and the associations of producers, intended for the agricultural sector.

 

The exemption will apply regardless of whether the goods are imported or acquired in complete pieces or disassembled in parts or components. 

In order to be benefited by the exemption, the final importation of the new or used corporeal goods, as well as the sales of corporeal goods, consumables, and raw material intended for the manufacture of machinery, equipment, and implements for agricultural use, must meet specific formalities.

 

The variables for making the periodical evaluations prescribed in article 65 of the Decree with the Status, Value, and Force of Law that establishes the Value Added Tax were fixed. Said evaluation will be made on a quarterly basis, as determined by SENIAT.

The taxpayers that fail to comply with the following will lose the exemption benefit:

 

i)                    The periodic evaluation established in articles 8 and 9 of the Decree and the parameters set by SENIAT.

ii)                   The obligations established in the Organic Tax Code and other tax rules, as well as in the Organic Customs Law and its Regulations.

 

The Decree will be in force as from its publication in the Official Gazette until December 31, 2017.

 

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.”