- Guatemala passed a new decree, effective 29 November 2025, to expedite and simplify tax refund procedures in response to private sector complaints.
- The reforms amend the Tax Code, VAT law, and other tax administration laws, covering VAT credits, VAT withholding surpluses, and refunds for excess or undue payments.
- A new current account tax system will provide detailed records of taxpayer balances, determining amounts to be paid, credited, or refunded.
- Restrictions on the use of VAT withholding surpluses are removed, and the Bank of Guatemala will now manage refund funds with shorter deadlines.
- The reform streamlines administrative procedures, enhances transparency, and allows taxpayers to recover funds more quickly for working capital.
Source: bdo.global
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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