Venezuela’s Decree No. 5.145 suspends VAT exemptions on essential goods like food, medicines, and books, effective 30 June 2025, while Administrative Ruling SNAT/2025/000054 designates special taxpayers as VAT withholding agents from 16 July 2025.

Venezuela has issued two significant updates affecting value added tax (VAT) regulations.

Decree No. 5.145 suspends the exemptions outlined in Section 1 of Article 17 of the VAT Law, impacting basic food products, medicines, fertilisers, medical equipment, books, newspapers, certain fuels, and more.

Additionally, Administrative Ruling SNAT/2025/000054 designates entities qualified as special taxpayers by SENIAT.

VAT law: Suspension of exemptions 

Venezuela has published Decree No. 5. 145 in the Official Gazette No. 6.918 on 30 June 2025, which establishes the suspension of the exemptions provided in Section 1 of Article 17 of the VAT Law. The exemptions are mainly aimed at basic food products, medicines, fertilisers, medical equipment, as well as books, newspapers, and certain fuels, among others.

At the same time, this Decree grants a VAT exemption for definitive imports of certain tangible movable goods carried out by bodies and agencies of the National Public Administration, as well as by individuals or legal entities using their own resources.

To access this benefit, importers must submit their customs declaration along with a goods description, a commercial invoice issued in the name of the applicant, and a COMEX-issued Exemption Certificate.

Failure to meet the conditions will revoke the exemption, triggering import taxation and applicable penalties. The Decree establishes that the exemption regime will remain in effect for one year, beginning five days after its publication in the Official Gazette.

New VAT withholding agent ruling

Venezuela also published Administrative Ruling SNAT/2025/000054 in the Official Gazette No. 43.171 on 16 July 2025, which designates the entities qualified as special taxpayers by Venezuela’s National Integrated Customs and Tax Administration Service (SENIAT), responsible for the payment of Value Added Tax (VAT) in the capacity of withholding agents.

The Ruling designates qualified and notified sole proprietors as VAT withholding agents.

Ruling SNAT/2025/000054 took effect on 1 August 2025.