Law that suspends VAT charge on construction services enters into force
On September 16, 2020, Law N°9887, which suspends the Value-Added Tax on engineering, architecture, topography, and construction services for civil works until August 31, 2021, entered into force. Moreover, for the years 2021 and 2022, the law reduces the VAT charge to 4% and 8%, respectively. Such services will not be taxed at the general rate of 13% until September 1, 2023. This tax treatment applies to any project registered and endorsed before the Federated College of Engineers and Architects (CFIA), regardless of its registration date.
(Law No. 9887, published at scope No. 243 of La Gaceta No. 230 of September 16, 2020)