VAT rates in Guatemala

Quick overview

Standard Rate	Reduced Rate	Other Rates
12%	5%	Zero-rated (0%) and exempt

The local name for VAT in Guatemala is Impuesto al Valor Agregado (IVA).

There are basically 2 VAT rates in Guatemala:

• Standard VAT rate is 12%
• Reduced VAT rate is 5%

Recent developments

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

Standard rate: 12%

This rate applies for all transactions that take place in Guatemala, 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%

• A 5% rate on gross sales applies to small taxpayers, which are those with annual turnover of less than GTQ150,000 (approx. USD19,380).
• Under this scheme, no input tax recovery is permitted.
• Also, taxpayers duly registered under the Regime for Agricultural Contributions should be subject to a 5% VAT rate when their annual sales of products in the agricultural sector do not exceed the amount of GTQ3 million (approx. USD380,000) within the applicable fiscal year.

Zero rate (0%)

• Exports of goods and services

Exempt transactions

• In addition to supplies that are subject to tax, some supplies are exempt, which means input tax is not recoverable.

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

This post was last updated on October 22, 2021.

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