The increase in fuel prices that has occurred in recent months has led to the establishment of some exceptional and temporary measures, including the exemption of VAT on fertilisers, fertilisers and soil correctives, as well as products for feeding cattle, poultry and other animals, when used in agricultural production activities.
This measure entered into force on 29 April and is in force until 31 December 2022.
This temporary exemption, entitled to upstream deduction, under the same conditions, applies to the following goods:
- Fertilisers, fertilisers and soil correctives, with the exception of: fertilising materials intended for home-grown floriculture, provided that they are marketed in packages not exceeding 1kg or 1L; substrates or culture media.
- Flour, cereals and seeds, including mixtures, waste and waste from the food industries and any other products suitable for feeding livestock, poultry and other animals, in particular products listed in the Catalogue of feed materials. This exemption shall not apply to food for pet animals, animals kept in laboratories, zoos or circuses and competition animals.
Invoices for the transfers of exempt goods referred to must mention this legal rule as a reason for the non-settlement of the tax, as follows: “VAT – Exemption provided for in Law No. 10-A/2022 of April 28”.
Law No. 10-A/2022 of 28 April 2022
Circular Letter No. 30246, of 29-04-2022
How can Moneris help?
Moneris’ Technical Tax Committee, as well as its expert advisors, are available to help clarify these and other exceptional measures in place, which respond to the current rise in fuel prices.
Contact your Moneris manager or use the usual media: firstname.lastname@example.org | 210 316 400.