Tax & Accounting Blog

Venezuela Value Added Tax Increase

Indirect Tax, VAT Tax Rates December 23, 2010

Last Friday, the Venezuelan National Assembly approved the “Enabling Law” (Ley Habilitante), which gives President Hugo Chavez dictatorial and legislative powers for 18 months.

Chavez has announced that his government is currently revising the VAT law and due to the state of emergency in Venezuela a Value Added Tax increase is expected.

Venezuela has one of the lower VAT rates (12%) in Latin America, in the next few weeks the Value Added Tax rate could increase by 2%.