- Paraguayan National Tax Revenue Directorate issued Binding Consultation No. 528 on VAT application to penalties for breach of contract
- Consulting firm inquired about VAT exemption for penalties for untimely delivery of goods
- Tax Agency clarified that penalties for contractual breach are exempt from VAT
- Penalty amounts from commercial grain supply obligation are subject to business income tax
- Financing of pecuniary obligation is subject to VAT under the “services” concept
Source: news.bloombergtax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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