Indirect tax - Venezuela

The Value Added Tax (VAT) is the main type of indirect taxation in Venezuela.

It is a consumption tax that is applied throughout the process of production, distribution and marketing of goods and services, it is also applied to the importation of goods and services. Although certain goods and services are exempt from the tax.

VAT is borne by the final consumer as it is included in the price paid, the responsibility to charge it, collect it and pay it to the tax authority at each stage of the process falls on the company that makes the supply, that is, the sale.

A company will charge VAT (output tax) on its sales and will incur VAT (input tax) on its purchases (including VAT paid on importation). The difference between the output tax and the deductible input tax in each taxable period will be the amount of VAT to be paid by the company to the tax authority. When the input tax exceeds the output tax, it is transferred as a deductible tax credit from the next VAT amount to be paid.

Current rates of VAT are:

• Standard rate of 16% for most goods and services.
• Reduced rate of 8% for some goods and products for human consumption and animal consumption, and professional services provided to the public sector, and national passenger air transport.
• Zero-rated goods and services for export.
• Zero-rated  for the Sale of Hydrocarbons of Mixed Companies to PDVSA and Subsidiaries.
• Additional rate of 15% for Luxury Consumer Goods.

There is not a registration limit for the VAT, but all person or economic entity that who either makes or intends to make taxable supplies of goods or services in the course or furtherance of a business must has a tax ID.

This tax ID is individual and non-transferable for each person or economic entity, and must be used in each VAT return submitted to the tax authority.

It's not required VAT registration limit who are not established in Venezuela, at least that own a permanent establishment or fixed base of business in the country.

There is not any specific legislation to tax non-resident supplies of electronically supplied/digital services to private consumers resident in your country.

However, there is a liability regime for the consumer receiving the service, under which the consumer declares and pays the tax on behalf of the service provider.

A non-established business who either makes or intends to make taxable supplies of goods or services inside country need a legal representative in order to register it as taxpayer.

It’s required to submit VAT returns covering biweekly periods. Even, when there is no tax payable.

Yes, if VAT returns are not submitted on time, or the related tax is not paid by the due date, the tax authority can imposed penalty. 

These penalties includes fine and default interest.

For specials taxpayer, a Withholding VAT statement must submit covering biweekly periods.

Yes, penalties can be applied for omissions of withholding tax returns, and penalties for non-compliance tax formalities (tax books, invoice issue, withholding vouchers, among others).

No, no can the VAT incurred by overseas businesses be claimed, even if they are registered in Venezuela. 

A VAT invoice must show:

• an invoice number which is unique and sequential,
• the seller's name and address,
• the seller's Tax ID registration number,
• the invoice date,
• the customer's name and address,
• the customer´s Tax ID registration number,
• a description sufficient to identify the goods or services supplied to the customer,
• the unit price,
• the quantity of goods or the extent of the services,
• any cash discount,
• the VAT rate,
• the total amount of invoice and VAT charged,
• the total amount payable, excluding VAT.

Not available.