VAT: EARLY RECOVERY CAN BE ACCESSED WITH INVESTMENTS FROM US$2 MILLION

The plenary of Congress approved Bill No. 3672 which proposes to establish that companies can benefit exceptionally from the Special Regime for the VAT Early Recovery, regulated by Legislative Decree (L.D.) 973.

The initiative was adopted by a majority vote of 82 votes in favor, 22 against, and 5 abstentions.

Congresswoman Rossangella Barbarán Reyes (FP), chair of the Committee on Economy, Banking, Finance and Financial Intelligence, said the proposal aims to make it temporarily and exceptionally flexible in order to help revive private investment in the country.

She added that the economic situation in the country was deteriorating and growth projections were steadily declining.

“Private investment has growth 0% for this year and for the coming years only 3%, so measures are needed to promote and revive private investment,” she said.
Article 2 of the legal proposal exceptionally allows the regime to be accepted in reference to investments in any sector of economic activity not less than US$ 2 million until December 31, 2024.

The only final supplementary provision indicates that the regulation is effective from 1 January 2023.

In the debate, Congressman Eduardo Salhuana Cavides (APP) said that this proposal is a benefit because it is an already existing exemption that expires on December 31 of this year and is being extended to 2024.

“The aim is to promote investments, it has been reduced from five million to two million to incorporate more small entrepreneurs who wish to invest in various areas in the country,” he said.

Also, Member of Parliament Edwin Martínez Talavera (APP) stressed that the initiative encourages companies to reinvest in our country.

The legislative proposal was cleared of a second vote with 79 votes in favor, 21 against and 6 abstentions, thus expediting it to be sent to the Executive Branch for eventual promulgation.