On May 21, 2020, through Decree 682, the national government established a special sales tax exemption. It also excluded the leasing of commercial contracts from VAT and reduced the national consumption tax rates. In this regard, the Decree established:

1. Special VAT exemption.
The Decree provided an exemption from VAT for certain goods sold within the national territory, in the following days:

i.    June 19th, 2020
ii.    July 3rd,  2020
iii.    July 19th, 2020

Thus, the goods covered by this exemption are as follows:

• Clothing and accessories, whose sales price are equal to or less than 20 UVT.
• Household appliances with a sale price equal to or less than 80 U.V.T.
• Sports elements with a sale price equal to or less than 80 UVT.
•  Toys and games with a price equal to or less than 10 UVT.
• School supplies with a sale price equal to or less than 5 UVT.
• Goods and supplies for the agricultural sector with a sale price equal to or less than 80 UVT.

2. Reduction of national consumption tax rates in the food and beverage industry:
According to the Decree, the rate of the national consumption tax will be reduced to zero percent (0%) until December 31, 2020.

3. Exclusion of sales ta- VAT, in the lease of commercial establishments and concession of space.
The Decree established until July 31, 2020, an exclusion from sales tax-VAT on monthly lease fees caused and invoiced after the Decree was in force, and monthly payments caused and invoiced after the Decree was in force until July 31, 2020. The above, if the following requirements are met:

i. That it is a matter of leases or concessions of commercial establishments or spaces.
ii. That the establishments or commercial spaces were open to the public before the declaration of the Health Emergency.
iii. That the activities carried out in the establishments or commercial spaces were necessary and primarily associated with the concurrence of customers.
iv. That, during the health emergency declared by the Ministry of Health, the commercial establishments or spaces were closed to the public, totally or partially, for a period exceeding two weeks.

Finally, it is important to note that this exclusion does not apply to the lease of other commercial properties such as offices and warehouses.