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Paraguay renews transport VAT rate cut to end 2022

Existing transport VAT rate discount extended to 31 December 2022

The Paraguayan President’s department has rolled over the 50% VAT discount – to an effective reduced VAT rate of 5% from the standard rate of 10%.  This was due to end on 31 September; it will now expire on 31 December 2022.

The tax subsidy applies to:

  • Public transport
  • Passenger tranport
  • Cargo flights
  • School transport

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The South American state has already provided similar relief to the following sectors:

  • Tourism
  • Tourist guides
  • Hotel and accommodation services
  • Transport services
  • Goods for supply to tourists
  • Leasing property on short term basis
  • alcoholic beverages (excise duties)

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