Under Guatemala’s tax law, VAT withholding requirements apply to certain transactions. VAT withholding can have a significant effect on the cash flow of companies, particularly those engaged in sales to consumers. Where a company’s operations result in it being in a position where the VAT withheld exceeds the company’s actual VAT liability, it may take multiple years to obtain a refund. If the existing rules and procedures were modified to expedite the refund process, this could provide welcome relief to consumer businesses facing cash flow issues, particularly in the current environment.
Source: Deloitte
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