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CHANGES ON EXCLUDED AND EXEMPTED ASSETS

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CHANGES ON EXCLUDED AND EXEMPTED ASSETS

VAT

Some goods currently exempted or excluded would be subject to VAT

 

Pursuant to the tax reform bill, exemptions and exclusions from VAT to Basic Food Basket, mobile devices, personal computers, agricultural equipment, among others, would be eliminated. Products for medical use would remain excluded from VAT and new goods, such as military weapons for private use of the military forces, and feminine hygiene devices would be classified as VAT excluded.

Intangible assets, associated with industrial property, and goods sold from the national custom territory to Industrial Free Trade Zone Users would be considered VAT exempted. Tangible movable goods sold within the country to international marketing companies would remain VAT exempted.