Decree N° 3881/20 was published on 07/28/2020; tax measures taken by the Tax Administration (SET) as a result of the health emergency status in the country caused by the COVID-19 pandemic are expanded.
In fact, the provisions establish a transitory regime related to Value Added Tax (VAT) applicable to services involving hotel accommodations, restaurants, catering for events in the local market, sale of tourist packages destined for Paraguay, as well as the leasing of real estate for these economic activities
Specifically, the VAT taxpayer engaged in the aforementioned activities shall calculate the tax based on 50% of the net accrued price, and then apply the 10% rate. In the sales receipt, the respective percentages must be entered in the «exempt» or «taxed» columns.
This regime benefits taxpayers registered in the RUC under the following activities:
- 56101 Restaurants and Grill Restaurants
- 56102 Takeaway restaurants
- 56210 Suppliers for Gatherings
- 55101 Hotel accommodation activities
- 79110 Travel agency activities
- 79120 Tour operators activities
Additionally, this benefit is applicable to those taxpayers who rent and/or allow the use of real estate to those who are engaged in the activities described above.
This regime will be in effect from 08/01/2020 to 06/30/2021.
For any information you consider necessary, please contact us.
BKM Berkemeyer
