International VAT Guides – Venezuela

VAT rates in Venezuela 

How much is VAT in Venezuela? 

The Venezuela VAT  system, in its nature and structure, is established in accordance with OECD principles. The VAT structure is primarily a three-fold structure, consisting of a general tax rate, a reduced rate, and a zero-rate. There is also a so-called special-high rate reserved for luxury supplies under the Venezuelan VAT Act. 

The general VAT rate in Venezuela is 16%.

VAT threshold in Venezuela 

The VAT Venezuela regime doesn’t directly imply the liability of non-resident digital service providers. The country hasn’t introduced specific rules for non-resident digital service providers or vendors of digital products.

There is no VAT threshold in Venezuela for non-resident digital platform providers or marketplaces. 

VAT Taxable Activities in Venezuela

Types of taxable activities that trigger mandatory VAT registration:

• Supply of goods and services for consideration;
• Services performed abroad and enjoyed in the country
• Imports of goods and services; 

Tax Representative in Venezuela 

Non-resident digital service providers who wish to register and collect Venezuela VAT are, in most cases, free to choose their tax representatives.

Tax registration 

The foreign providers of services that are mandated to register for VAT, or the businesses that are looking to register for VAT voluntarily, need the services of a local fiscal agent to do it.

VAT on Electronically Supplied Services in Venezuela 

Digital Services

The country hasn’t introduced a specific VAT regime for non-resident providers of digital services. Under the current rules, for B2C supplies of digital services, the foreign seller, isn’t obliged to register for VAT. For B2B supplies, the VAT collection and remittance obligation is shifted to domestic recipients, if it is registered for VAT underthe ordinary regime. 

How much is VAT in Venezuela for Electronically Supplied Services?

 The VAT rate Venezuela for most electronically supplied services is 16%.

Taxable Digital Services in Venezuela

The following types of digital services trigger mandatory VAT registration of non-resident providers:

• Audio and video streaming services 
• SaaS services
• E-books and publications 
• Travel arranging services

Invoicing Rules

A VAT-registered non-resident supplier of remote services isn’t obligated to issue a tax invoice to its customers. 

The minimum requirements of the invoice are the following: 

General information 

• Date of invoice issuance 
• Consecutive invoice numbering
• Invoice type specification
• Date and time of supply
• For withholding invoices, a different numbering shall be used

Seller information

• Company name
• Full address(head office)
• Billing address if different from the company address
•  VAT number

Customer information

• Name 
• Full address
• VAT number(if applicable)

Fiscal Information

• Tax amount for each type of goods or services supplied
• Net value per tax rate
• Distinct line of gross value per tax rate or tax-exempt supply
• Type of the transaction by reference to the categories indicated in the VAT Act 
• Total tax  amount 
• Invoice Total tax exclusive
• The rate of any discount
• Total invoice amount

Foreign Currency Invoice in Venezuela  

In most cases, issuing an invoice in a foreign currency is permitted. 

Return 

The VAT regime doesn’t recognize simplified reporting and remittance methods for foreign service providers. The VAT-registered persons should follow the same return procedures as domestic vendors.

VAT Return

Penalties for late reporting and omitted declarations 

One of the most common mistakes made by non-resident digital service providers when commenting on their trading activities in Venezuela is failing to register, file, or pay local VAT on time to the tax authorities. 

The following penalties could follow the lack of compliance: 

Late Payment Penalty: 

• Penalties for Late Payment – Any person who pays the taxes due late within one year from the date on which the obligation should have been fulfilled shall be penalized with a fine of 0.28% of the amount owed for each day of delay, up to a maximum of one hundred percent (100%).

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