Paraguay: Government announces VAT cut of 10% for Transport Services
The Revenue Authority of Paraguay released Decree No. 7355/2022, which offers temporary VAT relief for transportation services. According to the decree, the supply of qualified transportation services is subject to a VAT rate of 10% on 50% of the service fee.
The reduced VAT rate is applicable to:
- National medium- and long-distance passenger transportation that is not considered as VAT-exempt.
- Public transportation offered by taxis
- School transportation
- Local and worldwide freight transport
The reduced rate is in force until September 30.
Source: gacetaoficial.gov.py
