List of goods and services not VAT exempt | KPMG | GLOBAL
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Dominican Republic: List of goods and services not VAT exempt

List of goods and services not VAT exempt

In pursuit of transparent and correct use of value added tax (VAT) exemption cards by free trade zones, the Ministry of Finance released a list of goods and services that are not considered exempt from VAT.


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  • Airplane tickets
  • Bars and restaurants
  • Lodging
  • Alcoholic beverages, tobacco and cigarettes
  • Sports goods
  • School supplies
  • Club memberships
  • Supermarkets for the purchase of personal goods
  • Entertainment
  • Florists
  • Household appliances, furniture and components (except office furniture and equipment), lamps, carpets and linens
  • Clothing and accessories (except uniforms) manufactured, and synthetic leather goods (handbags, wallets, suitcases, footwear); as well as pieces of jewelry, perfumery, cosmetics and other personal hygiene products including bathtubs,  hot tubs, pre-assembled kitchens, among others
  • Spare parts, vehicle components and tires for motor vehicles of personal use; 
  • Motor vehicles (vans, jeeps, motorcycles, four wheels and similar; jet-skis, yachts and other sports boats and recreational boats)
  • Food to be consumed outside free trade zones, for either human or animal consumption
  • Candy shops, bakeries, confectionery, ice cream shops and toy stores 
  • Photography equipment, professional appliances and optical goods, including personal telecommunications equipment (cell phones, laptops, tablets, among other parts and pieces)
  • Construction materials in general for personal use
  • Gym services

In addition, goods and services purchased with VAT exemption cards will be directly linked to the production activity of free trade zones. 

Excise taxes

The National Council for Free Trade Zones (CNZFE) simultaneously released a communication specifying that the excise tax exemption will be applicable exclusively to the purchase of insurance for:

  • The buildings of companies; 
  • Transport of cargo, equipment and machinery; and
  • Vehicles for transporting  employees (buses holding more than 12 passengers). 

To request the excise tax exemption, the free trade zone must obtain a certificate of no-objection issued by the CNZFE, which may be requested 30 days before the expiration of the insurance policy.


Read a March 2017 report (English) [PDF 319 KB] and (Spanish) [PDF 161 KB] prepared by the KPMG member firm in the Dominican Republic

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