The Paraguayan government has extended the reduction Value Added Tax rate on hotel and overnight accommodation, tourism and tourist transport, and catering services. It may be applied by hotels, travel agents, restaurants, cafes and related catering services.
It applies just 10% VAT on 50% of the invoice value. Since VAT is This is to provide an indirect tax subsidy to the tourism and related sectors during the COVID-19 crisis.
The regime was first introduced in August 2020 and was intended to run until 30 June 2021. This new extension rolls it over until 31 October 2021.
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