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VAT rates in Paraguay

Quick overview

Standard Rate Reduced Rate Other Rates
10% 5% Exempt

The local name for VAT in VAT is Impuesto al valor agregado (IVA).

There are basically 2 VAT rates in VAT:

  • Standard VAT rate is 10%
  • Reduced VAT rate is  5%

Recent developments

For more information about (recent) rate change developments in VAT, please click HERE.

Standard rate: 10%

This rate applies for all transactions that take place in VAT, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).

Reduced rate:  5%

  • Basic family products
  • Pharmaceutical goods
  • Sale or leasing real estate for housing
  • Agricultural products

Exempt supplies without the right to deduct VAT

  • Foreign currency
  • Oil by-product fuels
  • Interest on financial products
  • Exportation of goods and exportation freight services

A global VAT/GST rate overview can be found here (note this is a work in progress).

This post was last updated on October 21, 2021.

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