Venezuela: Additional VAT rate, goods and services paid for in foreign currency

Venezuela: Additional VAT rate

The National Constituent Assembly on 29 January 2020 issued a decree (that was also published in the official gazette (No. 6.507) on 29 January 2020) that imposes a new additional rate of value added tax (VAT) for payments made for goods and services in foreign currency.


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The additional tax rate is to be imposed at a rate between 5% and 25% on goods and services paid in foreign currency, crypto-currency or crypto-assets (that is, currency other than that issued and endorsed by the Venezuelan government).

The government can modify the additional VAT rate, subject to certain conditions. For instance, the additional rate could be modified by the government, and different rates may be established for certain goods and services, but such rates may not exceed the established rate limits. The additional rate is to:

  • Be applied to the sale of personal property or the provision of services in Venezuela as well as to the sale of personal property or the provision of services that are exempted from VAT
  • Be applied to the sale of real property

The additional rate will not apply to transactions made by the government, governmental agencies or departments, or by certain diplomatic and consular agents or international organizations.

Under the new additional VAT rate, the subject invoices must be expressed in the currency, crypto-currency or crypto-asset of the transaction payment and an equivalent amount in bolivars. Similarly, both amounts must appear on the invoice, and must establish the applicable exchange rate, the tax base, the tax amount, and the total amount of the transaction.

The additional tax rate is effective 30 calendar days following the date of the decree’s publication in the official gazette, and the related decree on partial reform of the VAT regime is effective 60 days after publication in the official gazette.


For more information, contact a tax professional with KPMG’s Latin America Markets Tax practice:

Alfonso A-Pallete | +1 (212) 954-3852 |

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