Venezuela Introduces Short-Term Reduced VAT Rate for Electronic Purchases

In order to promote the use of electronic payments by individuals, Venezuela has introduced a value added tax rate of 10% for purchases made by end-consumers through electronic means, such as credit cards, debit cards, or electronic transfers (standard tax rate is 12%). The reduced rate applies for purchases of up to VEF 200,000 paid for exclusively through electronic means. The reduced rate does not apply for purchases of precious metals and stones or for the import of goods.

The reduced ra…