Paraguay Introduces Beneficial VAT Regime for Imports and Sales of Goods to Tourists

Paraguay has published Decree No. 2063, which establishes the new Shopping Tourism Regime (Régimen de Turismo de Compras - RTC). The RTC provides a specific VAT regime for qualifying companies in Paraguay that import and sell certain goods to tourists in specified cities with effect from 9 July 2024, including the cities of Asunción, Ciudad del Este, Encarnación, Pedro Juan Caballero, Pilar, and Salto del Guairá. Under the regime, qualifying companies pay VAT and advance corporate income tax…