SUSPENSION OF VAT EXEMPTION ON IMPORTS OF VARIOUS PRODUCTS
On December 31, 2025, Decree No. 5,196 was published in the Extraordinary Official Gazette No. 6,952. This Decree suspends the application of the exemption established in Article 17, numeral 1 of the Law Regulating Value Added Tax (VAT), while simultaneously implementing a VAT exoneration on the importation of specific products, subject to obtaining a certificate issued by the Foreign Trade Committee (COMEX).
I. Suspension of VAT Exemption
In the first instance, the application of the exemption provided for in Article 17, numeral 1 of the VAT Law is suspended. The aforementioned article states the following:
“Article 17. The following shall be exempt from the tax established in this Law: 1. Importations of goods and services mentioned in Article 18 of this Law (…).”
Article 18 of the VAT Law includes various food products, fertilizers, medicines and active ingredients, vegetable oils, and corn intended for both human and animal consumption, among others.
II. VAT Exoneration on the Importation of Specific Products
Secondly, a VAT exoneration is granted for the definitive importation of goods listed in Appendix I of the aforementioned Decree, subject to obtaining an exoneration certificate issued by COMEX.
III. General Aspects of the Exoneration
a. Reference to goods included in Appendix I: Examples include pharmaceutical products, such as various medicines under heading (3004), as well as organic and inorganic chemical products.
b. Accessing the Benefit: Upon filing the Customs Declaration (DUA), beneficiaries must present the following to the Customs Authority:
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- A descriptive list of the goods;
- A commercial invoice in the name of the beneficiary for the acquisition of the goods;
- The exoneration certificate issued by COMEX;
- The legal regime applicable to the type of product as established by the Customs Tariff (i.e., permits, registries, certificates, or licenses, as applicable).
c. Loss of Benefit: Beneficiaries who fail to comply with the conditions set forth in the Decree shall forfeit the benefit. Consequently, the importations will be considered taxable, without prejudice to any sanctions applicable under the Organic Tax Code (COT) and the Organic Customs Law (LOA). Furthermore, the benefit will be forfeited by those who fail to undergo the periodic evaluation according to SENIAT parameters, and generally by those who breach the obligations established in the COT and LOA, specifically Article 177 regarding “Infractions committed in connection with the declaration of goods at customs.”
d. Inclusion and Exclusion of Tariff Codes: The Ministry of People’s Power for Economy and Finance (MPPEF) may, by means of a Resolution, include or exclude products, as well as create new Appendices to the Decree, in accordance with the guidelines of the National Executive.
e. Validity of the Exoneration: It shall remain in effect until December 31, 2026.
IV. Additional Considerations: Appendix I refers to 1,445 tariff codes; therefore, the products mentioned in point II.1.a above are for reference purposes only. It is crucial for importers to conduct an analysis of their products and ensure they have the correct tariff code, commercial description, and technical specifications when evaluating the possibility of benefiting from this tax incentive.
Contacts:
LEĜA Abogados
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Yelitza Suárez
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Luzmely Rey
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+58 (0212) 277 2245
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