Paraguay’s tax authority (SET) has published Decree No. 6885-2022, which further extends the validity of VAT and selective consumption tax (ISC) relief measures implemented during the COVID-19 pandemic. This includes:
- The special VAT regime for tourism, restaurant, and accommodation services originally introduced by Decree No 3881/2020 and Decree No. 3967/2020, which generally provides that for the supply of these services, the standard VAT rate of 10% is applied on 50% of the service price;
- The special VAT regime for the provision of immovable property leasing services for business activities originally introduced by Decree No 5232/2021, which generally provides that VAT taxpayers leasing real estate for business activities will calculate and pay the corresponding VAT by applying the 10% VAT rate on 50% of the taxable amount
Source Orbitax
