Day without VAT: tips to make the most of it

With the aim of promoting economic reactivation, the National Government included within the Tax Reform 2021 the realization of the so-called Days without VAT for the next October 28, November 19 and December 3.

Unlike last year, when the first Day without VAT was made, this time consumers who want to make purchases during any of the three days will be able to pay in cash and not only with credit or debit cards. In addition, they can make their purchases digitally or physically.

Another important point to keep in mind is that not all articles will be exempt from VAT. The goods that will NOT pay this 19% tax belong to the following categories:

• Wardrobe and wardrobe accessories.
• Home appliances, computers and communications equipment.
• Sports equipment.
• Toys and games.
• School Supplies.
• Agricultural goods and inputs.

To take advantage of the VAT-free Day in a better way, it is important to follow the following recommendations made by experts from companies such as Linio and officials from entities such as the Ministry of Health and Industry and Commerce.

1. The Ministry of Health recommends following all the protocols of If purchases are face-to-face, you must use a mask, keep social distancing and constantly wash your hands.
2. Make a budget and make a list of really necessary products. This will allow you to have a maximum ceiling to spend and not fall into excesses that affect your budget. Also bear in mind that the VAT exemption applies to buy a maximum of three units of the same product sold by the same establishment.
3. Compare prices and monitor discounts. It is important to take some time to know in advance the “normal” prices of the products of your interest. This way you will be able to verify the actual discount of the Day without VAT. It is also recommended to check prices on both the digital and physical channels, to get the most out of it.
4. Take advantage of the discounts of the Day without VAT to start with Christmas shopping. Establish what things you need or who you want to give gifts to as you could save money by not leaving purchases to the last minute.
5. If you shop online, take advantage of the early hours of the day, it is possible that, as the hours go by, the products with the highest demand will be sold out.
6. Check if there are additional promotions with bank partners, which can be combined with the VAT exemption.
7. Only enter safe and well-known web pages, thereby avoiding falling into bad shopping experiences.

The National Federation of Merchants (Fenalco), foresees that during the first Day without VAT, sales will be registered for an amount greater than 18 billion pesos, which would represent an increase of 30% compared to the only Day without VAT in 2020.