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.
