Venezuela hikes VAT on foreign currency settlements

Venezuela is to introduce a new, higher VAT rate for transactions settled in foreign currencies or cryptocurrencies.

The standard VAT rate in the South American country is 16%. From 28 February 2020, the new additional rate of between 5% and 25% will be introduced on sales in currencies not supported by the Venezuelan treasury. Normally zero-rated transactions, including exports, will also be subject to the new rate.