Paraguay has issued Decree No. 2063, establishing the new Shopping Tourism Regime (RTC) for qualifying companies importing and selling certain goods to tourists in specified cities from 9 July 2024. Qualifying companies pay 10% VAT on 12.5% of the value of the goods and 1% IRE on the customs value of the goods. The subsequent sale of imported goods to tourists or other companies is VAT exempt, and input VAT paid on the imported goods is deductible for IRE purposes. Companies must meet certain criteria to qualify, and the regime applies for 2 years, with the possibility of renewal.
Source Orbitax
