The National Executive issued Decree No. 4,757 on 29 December 2022 (“Decree“)1, which establishes exemptions from payment of value-added tax (VAT) and customs duties for imports of various goods in Chapter II of the Decree.
The Decree entered into force on 29 December 2022 and will apply the exemption benefits until 30 June 2023.
The most relevant aspects of the Decree are the following:
1. The Decree establishes the exemption of 90% from import tax and VAT of definitive imports of goods classified in the tariff codes established in Appendix I of the Decree. There are 1,567 tariff codes in Appendix I. The Decree establishes this tax benefit as a full right.
2. The Decree establishes the exemption from import tax and VAT of definitive imports of goods classified in Appendix II of the Decree. Said exemption is subject to the ‘Certificate of National Production or Insufficient National Production (CNP or CPNI),’ issued by the Ministry for Industries and National Production2. There are 441 tariff codes in Appendix II that are products in the pharmaceutical sector.
2. Filing of requirements for exemption
To enjoy the exemptions, the applicants must submit the following documents to the Customs Office:
1. Descriptive list of the goods to be imported
2. Commercial invoice issued in the name of the beneficiary in charge of the acquisition of the goods
The exemption benefit is applied to the registration date of the respective Customs Declaration for the importation, according to the Organic Customs Law.
3. Loss of the exemption
1. Noncompliance with any of the conditions established in the Decree. Under this scenario, the goods will be taxed and sanctions set forth in both, the Organic Tax Code and the Organic Customs Law may apply.
2. Noncompliance with (i) the periodic evaluation established in the Decree according to the VAT Law (Article 66) with parameters determined by the Venezuelan Tax Authority (SENIAT); and (ii) obligations established in the Organic Tax Code and Organic Customs Law.
3. Failure to make the customs declaration of the import according to the Article 177 of the Organic Customs Law.
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1 Official Gazette No. 6,727 of 29 December 2022
2 SENIAT issued a memorandum on 9 January 2023 to the Main Customs Managers to maintain the validity of these certificates until 31 January 2023 due to the fact that the merchandise that was expected in December will arrive during the month of January for logistical reasons