The Venezuelan Government has introduced a two-year VAT exemption1 for final imports of movable tangible property made by organs of the National Public Administration ("Administration") and the provision of certain services, for constructing "peace gymnasiums" in Venezuela.2 The exoneration will be effective from 31 July 2019 to 31 July 2021.
Amongst the exempted goods are:
The beneficiaries must submit to the import customs office the description of the goods to be imported and the commercial invoice issued in the name of the body or agency of the Administration. If the beneficiary prefers to make the imports through a different customs office, it must notify the original customs office. Customs offices must keep a record of VAT-exempt operations, identifying: (a) the number and CIF value of the goods; (b) the import tax and exempt VAT; (c) surcharges, countervailing duties, anti-dumping rights and late payment interest.
The Venezuelan Government also exonerated the payment of VAT on the provision of onerous services performed or used in Venezuela, including those from abroad, contracted by the Administration, exclusively for constructing peace gymnasiums in Venezuela. The Pro-Patria 2000 Foundation must declare the need for the service and the exonerated amounts. Some services are:
Evaluation of the exemption
The Minister of the People's Power for Economy and Finance and the Minister of the People's Power of the Office of the President and Monitoring of Government Management must evaluate the exoneration every two years, under the VAT Law,4 according to a weighted index.