Guatemala Introduces Temporary VAT and Fuel-Tax Exemption Through December 2026

Summary 

• Guatemala’s Decree No. 22-2026 temporarily exempts specified fuels from VAT and the petroleum-distribution tax from 1 October through 31 December 2026. 

• The covered products include superior and regular gasoline, diesel and gas oil, while ethanol fuel is included for VAT purposes. 

• Electronic invoices must identify the VAT and fuel-tax exemptions and show the benefit attributable to each gallon supplied. 

Extended article 

Guatemala has introduced a temporary tax exemption for specified fuels under Decree No. 22-2026. The measure applies from 1 October to 31 December 2026 and covers VAT and the tax on the distribution of crude oil and petroleum-derived fuels for superior gasoline, regular gasoline, diesel and gas oil. Ethanol fuel is also covered by the VAT exemption. 

The tax benefit must be passed through to consumers as an equivalent reduction in the selling price. The electronic invoice must expressly identify the temporary VAT and fuel-tax exemptions and disclose the benefit per gallon. Retailers are also subject to price-reporting and consumer-protection controls. From 1 January 2027, the ordinary tax treatment is scheduled to resume. 

External sources: Read the Guatemalan Congress announcement | Review the invoicing requirements

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