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Venezuela offers discounted VAT on card payments

  • Dec 24, 2016 | Richard Asquith

Venezuela offers discounted VAT on card payments

Venezuela is to offer a 2% VAT rate discount to consumers purchasing goods or services by electronic payments, including credit cards and wire transfers. The measure is an incentive to avoid unrecorded, cash-based payments and reduce VAT fraud.

The current standard VAT rate in Venezuela is 12%. The 10% discounted rate will apply only to transactions above VEF 200,000. Any invoice for such a transaction must clearly state that the VAT rate is discounted, and the invoice must still be produced by an official cash register.

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.