Venezuela offers discounted VAT on card payments
- Dec 24, 2016 | Richard Asquith
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.