Paraguay has published Decree No. 3881 of 28 July 2020 in the Official Gazette. The Decree entered into force on 1 August 2020 and provides for the introduction of a special VAT regime for tourism and restaurant services to support these sectors in light of the COVID-19 pandemic. The regime provides that for the supply of these services, the standard VAT rate of 10% is applied on 50% of the service price. The regime is available for travel agencies and tour operators, hotels, restaurants, and catering service providers and will apply until 30 June 2021.