In depth

1.    Exemption

1.    The Decree makes exempt 90% of the VAT and import taxes on imports of new or used tangible goods, classified under the 1,550 tariff codes indicated in Appendix I of the Decree, performed by entities of the public administration or by individuals or legal entities with their own resources.

2.    The Decree makes exempt the total amount of VAT and import taxes on imports of new or used tangible goods, classified under the 441 tariff codes established in Appendix II of the Decree, performed by entities of the public administration or by individuals or legal entities with their own resources. For this exemption to apply, it is necessary to obtain a Certificate of No National Production or Insufficient National Production (CPN or CPNI), issued by the ministry with competence in matters of industries and national production, and the relevant customs declaration.

3.    The Decree makes exempt VAT and import taxes on imports of new or used tangible goods performed by (i) the Corporación Venezolana de Guayana or its affiliated companies, classified under the 166 tariff codes described in Appendix III of the Decree; (ii) the Ministry for Water Management or its affiliated entities, classified under the 260 tariff codes described in Appendix IV of the Decree; (iii) the Corporación Socialista de Cemento and its affiliated companies, classified under the tariff codes 2520.10.11.00 (natural gypsum, anhydrite in irregular pieces (stones)), 4010.19.00.00.00 and 4010.39.00.00 (conveyor or transmission belts of vulcanized rubber), 6902.10.90.00 (bricks, plates and tiles), and 7325.91.00.00 (balls and similar articles for mills — cast articles of iron or steel); and (iv) the Venezuelan Foreign Trade Corporation, classified under the tariff codes 6302.32.00.00 (bed, table, toilet or kitchen linen of synthetic fibers), 7210.41.10. 00 (flat-rolled iron products of a thickness of less than 4.75 millimeters), 7308.90.10.00 (plates, rods, angles, shapes, sections, tubes and the like, prepared for use in construction), 7321.11.00.10 (stoves, boilers, etc.), 8418.10.00.00, 8418. 21.00.00, 8418.29.00.00, 8450.11.00.00, 8450.12.00.00, 8450.19.00.00, 8450.20.90.00 (combinations of refrigerator and freezer with separate outer doors, compression, washing machines, including automatic drying machines, with centrifugal dryers, among others), 9404. 21.00.00 and 9404.29.00.00 (bed bases, bedding or similar articles of cellular rubber or plastics, whether covered or coated, and of other materials).

To see the appendices of the Decree containing the tariff codes subject to each exemption, click here (available in Spanish).

2.    Requirements for the exemption

The beneficiaries must submit the following documents in an electronic format to the customs office to benefit from the exemption:

1. Descriptive relation of the merchandise to import
2. Commercial invoice issued in the name of the beneficiary of the acquisition of the goods
3. The applicable legal regimes indicated in column 5 of the Article 37 of the Customs Tariff
4. The CPN or CPNI for the tariff codes described in Appendix II of the Decree (We refer to item 1.1 above.)
5. Imports must be performed through the same customs office chosen by the beneficiary of the exemption. If imports are required to be made through customs offices other than the one selected, the customs office of entry must be notified. This office will keep a record of operations exempted from taxes.

3.    Loss of the benefit

The Decree establishes that beneficiaries who fail to comply with the following conditions will lose the exemption:

1. Any of the conditions established in the Decree (In these cases, the imported goods subject to the benefit will be taxed without prejudice to the penalties that may apply in accordance with the Organic Tax Code and the Organic Customs Law.)
2. The periodic evaluation established in the Decree in accordance with the VAT Law (Article 66) and the parameters determined by the Venezuelan revenue service (i.e., Servicio Nacional Integrado de Administración Aduanera y Tributaria)
3. The obligations established in the Organic Tax Code and the Organic Customs Law
4. The declaration of goods at customs in any of the cases sanctioned in accordance with the provisions of Article 177 of the Organic Customs Law³

Please do not hesitate to contact us if you require further details or explanations about the general aspects highlighted in this alert or any related queries.

Spanish version

1 Official gazette No. 6,784 on 29 December 2023.]
2 The Decree establishes "31 June 2024"; however, this is an error as June only has 30 day
3 This article establishes fines when the goods do not correspond to the declared customs classification, the declared value does not correspond to the customs value and the goods do not correspond to the declared units of the metric system.