In addition to increasing the general rate of VAT from 16% to 19%, some exemptions and exclusions will be modified.
It is proposed that the general rate of VAT will be increased to 19%, as the current rate of 16% is below the Latin American average. Also, the proposed legislation will reduce the multiple exemptions and exclusions.
Some exempted or excluded goods, such as periodical publications and the internet service in some cases, will be taxed at a rate of 5%.
Services taxed at a rate of 5% were not modified, maintaining this level of taxation among other services as, for example, health insurance.
The reform incorporates a transitory article which allows taxpayers to adjust the rates of taxed goods in a period of two months in order to comply with the new VAT rates scheme.