Dominican courier companies are concerned they would see considerable drop in sales if Congress approves the Ministry of Hacienda proposal to apply VAT to the import of low value goods (LVG), or (Envios de Poco Valor). These are purchases normally made via the Internet and that are shipped here via courier with a cost, insurance and freight (CIF) value of US$200 or less for the goods. As proposed, the VAT would be calculated based on the CIF value of these products, regardless if they are for personal use.
The proposal grants the Tax Agency (DGII) 120 days to prepare the necessary regulations for implementing the measure after it is passed in Congress.
The Dominican association of couriers (Asodeo) alerts that the tax on low value goods would affect the availability of cargo space for exports, impacting the country’s desired positioning as a regional logistics hub.
Local businesses complain that people shopping online, via Amazon, and other vendors is unfair competition because these do not have to pay taxes here.
On the other hand, the LVG provision is in the DR-CAFTA Agreement that calls for imports to be tax free.
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Diario Libre
14 October 2024