Import Procedures

Venezuelan Customs requires that all documents are in Spanish.  The invoice must be the typewritten original, not a photocopy.  The manifest of importation and declaration of value (bill of lading) must be in quadruplicate.
The following documents are required:  commercial invoice; bill of lading or airway bill; packing list; certificate of origin; and special certificates or permits when required (e.g., phytosanitary or quality standards certificates). Exporters should consult with the Venezuelan importer regarding what documentation is required in addition to the invoice.

Exporters should quote CIF and Free on Board (FOB) prices for Venezuela.  Insurance and freight must be listed separately on the invoice. The invoice must be in duplicate and list both the value per unit and the total value of the shipment. The description of the merchandise must include the appropriate tariff number, which the importer can supply. To simplify the import process for a large amount of cargo for one project, there should be a single declaration for all items, and each item should be then listed separately with its respective tariff number.
Some Venezuelan importers engage in over-invoicing to acquire foreign currency at the official exchange rate. This is illegal under Venezuelan law.

Exporters are encouraged to follow the instructions of the importer and, for products requiring registration (food, pharmaceuticals, perfume), to ensure that the steps have been taken prior to shipment. Overall, the procedures are rather slow and the Venezuelan importer has to provide a number of documents by cooperating with the exporter.

For more information, please visit the Venezuela import regulations guidance website.

Distribution market players

Venezuela's mass retail network consists of the following:

• 333 hypermarkets and supermarkets that are part of chain stores
• 6,030 independent supermarkets
• 8,312 pharmacies
• 12,460 beverage retailers
• 136,906 neighborhood grocery stores

The main chains are Makro (35 stores) and San Diego (19 stores) in the hypermarket field as well as Central Madeirense (57 stores) and Excelsior Gamma (26 stores) for super and hypermarkets.

(Source: ANSA, 2019 - latest data available)

Consumption Taxes

Nature of the Tax

Value-added tax (VAT) - Impuesto al valor agregado (IVA)

Tax Rate

Standard rate: currently 16% (may change every year, ranging from 8% to 16.5%).
15% additional rate on certain luxury goods, including vehicles and jewellery.
An additional tax rate ranging from 5% to 25% is applicable to goods and supply of services paid in foreign currency, cryptocurrency, or crypto assets different from those issued or guaranteed by the Bolivarian Republic of Venezuela.

Reduced Tax Rate

Exempted goods and services include food and goods for personal consumption such as bread, rice, salt, sugar, coffee, milk, pasta and margarine; books, newspapers and magazines; education provided by institutions registered in the Ministry of Education, Culture and Sports and the Ministry of Superior Education; public transportation of passengers by land or sea; tickets to national parks, museums and cultural centers; banking and insurance services; imports made by diplomatic agents, in accordance with international treaties subscribed to by Venezuela; medical assistance services; residential electricity; fertilizers.

Exports of tangible personal property and tangible movable property and exports of services are zero-rated.

The 15% additional rate applies to membership and maintenance fees of restaurants, nightclubs and bars with restricted access; the rental of ships or aircraft for civilians, among others, for recreational activities or sports; services provided by third parties through text messaging or other technological means; cars imported or manufactured in the country with a value equal to or higher than USD40,000; motorcycles imported or manufactured in the country with a value equal to or higher than USD20,000; airplanes used for exhibitions, advertisement, recreation or sports purposes; ships and vessels for recreation and sports purposes, or for the particular use of its owner; gaming machines that use coins or cards; caviar; lease of ships for recreation and sports purposes or airplanes used for exhibitions, advertisement, recreation or sports purposes; services rendered on behalf of third parties, through text messages or other technological means.

Other Consumption Taxes

The import and national production of cigarettes and tobacco (proportional tax levied at a rate of 70% on the retail price of cigarettes, tobacco, and its derivates) and the commercialisation and import of alcohol and alcoholic beverages into Venezuela are subject to excise taxes.

Corporate Taxes

Company Tax

Progressive rate up to 34%. The system of levy is expressed in tax units (unidad tributaria) that specify tax rates. The value of a tax unit is VED 0.40 in 2022.

Capital Gains Taxation

Capital gains are taxed as ordinary income at the corporate tax rate, while capital losses are deductible from ordinary income. Gains arising from the sale of shares registered on the Venezuelan stock exchange are subject to a 1% tax on the gross proceeds.
Gains upon liquidation or reduction of capital are taxable to the liquidating entity.

Main Allowable Deductions and Tax Credits

Depreciation of tangible and intangible assets (used to generate income) is tax-deductible. Goodwill can be generally amortised for tax purposes whereas depreciation of real estate used as rental property is not tax-deductible (same as for fines and penalties).
The current tax code does not include any provisions for the deduction of start-up costs.
Interest charges and bad debts (for loans that are part of the main business activity and were initially included in its gross income) are tax-deductible.
Donations to charitable organisations are deductible up to 10% of taxable income. This rate is reduced to 8% for companies with taxable income over UT 10,000 (tax unit, "unidad tributaria" in Spanish). The deduction is limited to 1% of the amount of tax due for oil extraction companies.
Payments imposed on the employer by the Labour Code - such as profit distribution or severance pay - are generally deductible.

Tax losses can be carried forward for up to three years. For each of these years, the amount of tax losses to be carried forward cannot exceed 25% of the tax due in a given year. The carryback of losses is not permitted. Furthermore, foreign tax losses can only be offset against profits earned abroad.

Other Corporate Taxes

Social security contributions payable by the employer could amount to 10%, 11% or 12% of salary, with rates varying according to the risk associated with the employee's work (capped at five minimum salaries). Employers also pay an amount equal to 2% of the salary for the unemployment insurance system (up to ten minimum salaries), and 2% of the salary for each of the housing assistance scheme and the training of the employee. Furthermore, employers contribute under the Organic Law on Prevention, Working Conditions and Working Environment (LOPCYMAT) at rates varying between 0.75% and 10% depending on the type of work.

Municipal authorities levy a tax on professional activities of the firm at rates varying between 0.1% and 10% depending on the location and the type of activity. A municipal tax is levied on real estate at variable rates.

Companies with a certain level of income or employees are liable for additional taxes: companies with an annual gross income exceeding 10,000 UT pay a fee under the Science, Technology and Innovation Act (LOCTI) at rates varying between 0.5%, 1% and 2% of gross income depending on the type of activity. They also contribute 1% of gross income under the Sports and Physical Activity Act if their annual gross income exceeds 20,000 UT. Finally, companies with 50 employees or more pay a contribution of 1% of gross revenue (2% for companies involved in the production or import of alcoholic beverages and tobacco as a contribution to anti-drug operations) to the National Antidrug Fund.

There are several stamp duties on the issuance of official documents ranging from 0.01 UT to 10,000 UT. Companies designated as "special taxpayers" are also liable for a 2% tax on the total bank debit or taxable transaction.

Capital duty amounts to 1% of capital (2% in the Capital District), while the sale of an active business is subject to a tax of 2% of its value. An inheritance/gift tax is applicable at rates up to 55%.

Under the Hydrocarbons Organic Law, the state is entitled to 30% of the volume of hydrocarbons extracted from any deposit, by way of royalties, while for the Gaseous Hydrocarbons Organic Law the royalty is equal to 20%. Furthermore, 10% of the value of each cubic metre of hydrocarbon by-products produced and consumed as fuel in wholly-owned operations, based on the price of the end consumer, is due as a tax
Sound and television broadcasting are subject to a 1% levy, whereas other telecommunication services are subject to a 2.3% rate (plus several other contributions).

Taxpayers whose net equity (for companies) exceeds 150 million TUs are subject to a wealth tax at 0.25% of total equity.

Other Domestic Resources

SENIAT

Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed

See the list of conventions signed by Venezuela.

Withholding Taxes

Dividends: 0 (standard rate)/34% (if dividend distributions exceed the payer company’s net taxed income)
Interest: 0 (resident individual)/4.95% (paid to non-resident banks or financial institutions)/standard progressive CIT rates of 15%, 22%, and 34% (applies to 95% of interests, the remaining amount is exempt - thus the effective rates are 14.25%, 20.9%, and 32.3%)/4.95% (paid to nonresident banks or financial institutions)/34% (resident companies and non-resident individuals)
Royalties: 0 (residents)/34% (applies to 90% of royalties paid, thus the effective rate is 30.6%).