Dominican Republic's National Council of Free Trade Zones of Exportation modifies VAT exemption card validity period

20 January 2020

The valued-added tax exemption card validity period is modified for free trade zone (FTZ) companies and operators to replace the standard one-year validity period with varying validity periods based on the type of company or operator.

On January 15, 2020, the Dominican Republic's National Council of Free Trade Zones of Exportation issued Notice No. 00376, which modifies the value-added tax (VAT) exemption card validity period applicable to companies and operators under the FTZ regime, as of the year 2020.

Specifically, Notice No. 00376 replaces the one-year validity period that was applicable to all FTZ companies and entities with the following validity periods:

Entity	Validity period of VAT exemption card
FTZ manufacturing companies whose sales are 100% exports	2 years
Other FTZ manufacturing companies whose sales consist of both local sales and exports	1 year
FTZ companies that provide design, diagramming, telemarketing, telecommunications, and other services	1 year
Operators of FTZ parks with multiple FTZ entities operating within the parks	2 years
Operators of FTZ parks with only one FTZ entity operating within the parks	1 year

If a VAT exemption card is issued for the first time to an FTZ company or operator, it will only be valid for one year.

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Contact Information
For additional information concerning this Alert, please contact:

Ernst & Young, Dominican Republic
• Ludovino Colón (ludovino.colon@do.ey.com)
• René González (rene.gonzalez@do.ey.com)
• Laura Veloz (laura.veloz.guerrero@do.ey.com)
Latin American Business Center, New York
• Ana Mingramm (ana.mingramm@ey.com)
• Enrique Perez Grovas (enrique.perezgrovas@ey.com)
• Pablo Wejcman (pablo.wejcman@ey.com)

Document ID: 2020-0138