Exemption of customs duties and VAT on vehicles

August 27, 2021

On August 25, 2021, Law No. 6793 was published in the Official Gazette of Paraguay, providing for the exemption of import customs rights and VAT on vehicles and adaptation mechanisms for vehicles destined for people with disabilities.

1. Who are the beneficiaries?

Beneficiaries under the terms and conditions established in this Law are as follows:

  • People with a permanent disability, a minimum of 33%, are certified by the SENADIS (Servicio Nacional de la Discapacidad – National Disability Service).
  • The father, mother, or guardian is appointed responsible by court order for the care and custody of persons with disabilities in case of a minority.
  • Non-profit legal entities dedicated to the protection and guarantee of the rights and habilitation of persons with disabilities.
  • Domestic and foreign companies engaged in the import and sale of vehicles.

2. Vehicle use

The acquired vehicle must be driven by people with disabilities and stated in the Certificate of Disability issued by SENADIS, in case of inability to drive, serving as an enabling document for a third person enabled to use and transfer the vehicle.

3. Cause for loss of benefit

The use of the vehicle by persons other than those authorized will cause immediate loss of the benefit, resulting in the detention of the vehicle by the competent authorities.

4. Exemption and Tax value

Beneficiaries are exempted from the payment of import customs duties, Value Added Tax, valuation service, customs intervention fee, and any amount or expense arising from the special import regime to purchase a vehicle for the use of a person with disabilities.

The tax value of the vehicle or the adaptation mechanism acquired under the terms and conditions may not exceed the ceiling of 118 legal minimum wages in force. The National Customs Directorate will determine the tax value as appropriate in each case.

5. Prohibitions

Vehicles and/or adaptation mechanisms acquired under the law may not be sold, donated, exchanged, assigned, or transferred for free or onerous consideration until a period of 5 years has elapsed and counted from the date of acquisition.

6. Efectiveness days

The rule is effective as of August 26, 2021.

Source: La Gaceta 26/08/21