The Executive Branch, through the Ministry of Finance, extended until March 31, 2022 the special and transitory regimes for the reduction of the Value Added Tax (VAT) and the Selective Consumption Tax (ISC) to continue favoring the sectors most affected by the pandemic such as hotels, restaurants, events and in order to consolidate the economic recovery.
In this way, Decree No. 6440/2021 establishes the special VAT regime for the leasing of real estate for business activities, with a tax base of 50%. Likewise, the special VAT regime for the provision of accommodation services in hotels, restaurants and supply of events in the local market and a sale of tourist packages to the country, which establishes a tax base of 50%.
The special VAT regime on the provision of rural accommodation, tourist transport, tourist guides and event organization services, which establishes a tax base of 50%.
It may interest you: The electronic billing application will be mandatory from 2023
On the other hand, Decree No. 6440/2021 also extends until March 31, 2022 the term of validity of Decree No. 5585 of July 1, 2021, by which the Selective Tax rates are temporarily modified Consumption (ISC) for certain products included in Law No. 6380/2019, Modernization and Simplification of the National Tax System.
Information my brain refuses to retain: how to right click on a Mac. Just won't hold it.
— Nurse Ratched Thu Jan 28 00:42:14 +0000 2021
Good receptivity
The Paraguayan Restaurant Association (ARPY) pointed out that the extension until March of the reduction in the tax burden had a good receptivity in the sector. The president of the union, Oliver Gayet, commented that the response of the members of the Arpy was that "this time there is something that suits them."
“We gastronomy continue to fight to continue providing jobs and return to normality. Thank you Arpy for all the work you have been doing for the sector, ”said the businessman on his Twitter account.
Read also: Fiscal deficit closed within the authorized range, according to preliminary figures
The Government announced that the reduction in the tax burden for the hotel, restaurant, events and tourism sectors will be maintained until March 2022. This measure was in effect until December 31. With this, it seeks to contribute to the economic recovery of these sectors through the Añua Program.