Paraguay 2014 VAT changes
- 20 December 2013 | Richard Asquith
The following amendments will be made to the Paraguayan VAT (Impuesto al valor agregado (IVA)) regime from 1 January 2014:
- Export of basic agricultural goods exported will be entitled to a 50% refund on any input VAT
- Goods subject to the reduced 5% VAT rate will no longer have an limit on the amount of input VAT that may be deducted. Such goods include: pharmaceuticals, leasing, debt interest and foodstuffs.
- Basic agricultural good will no longer be VAT exempt; instead being subject the reduced VAT rate.
The standard VAT rate in Paraguay is 10%.