0% VAT rate for electric generators

By means of Executive Decree No. 411, issued on October 3, 2024, and published in the Fourth Supplement of Official Gazette No. 658 on October 4, 2024, the President of the Republic reformed -for the purposes of VAT- the definition of “electric energy,” including the import and local sale of electric generators in all their forms and ranges, as well as their parts and components. As a result, the import and sale of electric generators will be subject to a 0% VAT rate.

According to Article 11 of the Tax Code, this reform should apply starting from November 1, 2024. However, the Executive Decree mandates that the reform be implemented immediately.