Electricity for Agricultural Irrigation

The most straightforward VAT measure introduces a reduced rate on electricity supplied to irrigation systems and equipment used in the agro-industrial sector. The change takes effect from the first day of the month immediately following the law's enactment, offering direct cost relief to farming and agribusiness operations that rely heavily on powered irrigation infrastructure.

Early VAT Refunds for Mid-Sized Investors

Under the new Régimen de Incentivo para Medianas Inversiones (RIMI), qualifying micro, small, and medium enterprises that make productive investments — in new machinery, construction works, or certain agricultural equipment — can access VAT credit refunds significantly earlier than under the general regime. Rather than waiting indefinitely to offset credits against future liabilities, eligible businesses can claim a cash refund after just three monthly fiscal periods have elapsed since the credit arose. This is a meaningful cash flow benefit for growing companies making capital investments.

Severance Fund Exempt from VAT

Contributions to and payouts from the new Fondo de Asistencia Laboral, the employer-funded severance reserve created by the law, are explicitly exempt from VAT. The only exception is the administrative commission charged by fund managers, which remains taxable.

Internal Taxes Scrapped on Key Sectors

Though technically internal consumption taxes rather than VAT, the law eliminates levies that functioned similarly on several categories effective next month: mobile and satellite telephone services, insurance products, luxury goods, motor vehicles, recreational boats, and aircraft. For businesses operating in these sectors, or those with significant related expenses, the removal represents a meaningful reduction in indirect tax burden.