Guatemala IVA at a glance
| Standard rate | 12% IVA (Impuesto al Valor Agregado) under Decreto 27-92 (Ley del Impuesto al Valor Agregado) |
| Reduced rate | 5% — small-taxpayer regime (Régimen de Pequeño Contribuyente) operates a flat 5% on gross income in lieu of standard IVA mechanics for qualifying small operators |
| Zero-rated supplies | 0% — exports of goods, qualifying exported services, supplies to Zonas Francas under Ley 65-89 and Ley 29-89 (Maquila Law) qualifying conditions, international transport |
| Exempt supplies | Categories under Decreto 27-92 — basic foodstuffs through small-trader channels, certain medical services, certain educational services, religious activities, certain financial services, residential rentals below set thresholds |
| Tax architecture | National IVA administered by the Superintendencia de Administración Tributaria (SAT) under the Ministerio de Finanzas Públicas. No regional or municipal VAT-equivalent layer. |
| Domestic registration | Mandatory at commencement of taxable activity through SAT’s NIT (Número de Identificación Tributaria) channel. The Régimen General de IVA applies to standard taxpayers; the Régimen de Pequeño Contribuyente (5% on gross income, no IVA mechanics) applies to qualifying small operators under specific gross-income thresholds (currently up to approximately GTQ 150,000 per year). |
| Foreign digital services regime | Guatemala does not have a fully implemented direct cross-border digital services VAT regime as of the date of this guide. B2B supplies operate under reverse-charge mechanics where the Guatemalan business self-assesses; B2C supplies from foreign vendors are operationally outside SAT’s direct collection channel in most cases. The situation continues to evolve — verify current status with a Guatemalan tax advisor. |
| Tax authority | Superintendencia de Administración Tributaria (SAT) — portal.sat.gob.gt. Administers IVA, ISR (Impuesto sobre la Renta), and FEL (Factura Electrónica en Línea) e-invoicing framework. |
| Filing — domestic regular taxpayers | Monthly IVA return (Declaración IVA Mensual) through SAT’s Agencia Virtual by the SAT-published monthly schedule, typically within the first half of the month following the tax period. |
| Filing — Pequeño Contribuyente | Monthly simplified return at 5% flat rate on gross income. |
| Electronic invoicing | FEL (Factura Electrónica en Línea) — Guatemala’s mandatory e-invoicing framework. Rolled out progressively from 2018 with mandatory adoption expanded by sector and turnover through successive SAT Acuerdos; large taxpayer groups now in mandatory scope with broader coverage expanding. |
| Late-submission fine | Specific scaled fines under Decreto 6-91 (Código Tributario) — typically denominated in quetzal amounts based on the omitted return value. |
| Late-payment interest | Interest at SAT-published rate (BANGUAT reference rate) plus penalty surcharge of approximately 100% over the omitted amount under prevailing framework. |
| Under-reporting penalty | Multa por omisión or defraudación — typically 50–100% of underpaid IVA depending on circumstances; criminal exposure for fraudulent under-reporting. |
| Tax evasion | Criminal prosecution under Código Penal and Decreto 6-91 (Código Tributario) provisions; imprisonment exposure for material amounts. |
| Records retention | 4 years from the date of the relevant tax filing under Código Tributario. |
| Currency | Guatemalan Quetzal (GTQ). USD ≈ 7.8 GTQ. |
| Statute | Decreto 27-92 (Ley del Impuesto al Valor Agregado). Decreto 6-91 (Código Tributario). Decreto 29-89 (Maquila Law). Decreto 65-89 (Zonas Francas). SAT Acuerdos and administrative guidance. |
Do I need to comply? — 60-second check
Have you supplied taxable goods or services in Guatemala in the past month, or are you about to? If yes, you’re in scope under either the Régimen General de IVA (standard, 12%) or the Régimen de Pequeño Contribuyente (5% flat on gross income for qualifying small operators under approximately GTQ 150,000 annual gross). Guatemala’s 12% standard rate is among the lower in LatAm — below Mexico (16%), Colombia (19%), Argentina (21%) — and reflects the country’s structurally competitive Central American positioning.
Four questions, in order:
- Guatemalan-resident business? All taxable activity is in scope from commencement. The structural choice is between Régimen General de IVA (standard) and Régimen de Pequeño Contribuyente (small operators under specific gross-income thresholds, flat 5% in lieu of IVA mechanics). Local Guatemalan Business track.
- Overseas business supplying digital services to Guatemalan consumers? Foreign SaaS / Digital Services Seller track. Guatemala has not fully implemented a direct cross-border digital services VAT regime as of the date of this guide — verify current status with a Guatemalan tax advisor.
- Overseas business shipping physical goods to Guatemalan consumers — Amazon-equivalent regional platforms, your own store? Foreign E-commerce Seller track. Import IVA at 12% applies at customs (Intendencia de Aduanas, SAT) alongside Derechos Arancelarios (DAI) and Impuesto Específico on listed categories.
- Overseas business importing goods into Guatemala for distribution, manufacturing, or onward sale? Foreign Importer track. Import IVA at 12% applies at customs on customs value + DAI + applicable charges. The Central American Common Market (CACM) framework, CAFTA-DR, and Guatemala’s Maquila and Zonas Francas regimes provide structural preferential treatment under specific conditions.
Two contextual points. First: Guatemala’s 12% standard rate plus the 5% Pequeño Contribuyente alternative is operationally distinctive in LatAm — the small-trader regime is a flat-rate framework, not a reduced IVA rate. Second: Guatemala’s Maquila regime under Decreto 29-89 has been operationally significant for textile and call-centre activity serving US markets — though the regime underwent structural revisions in 2015 (Ley de Emergencia para la Conservación del Empleo) and successive reforms; current applicability and qualifying activity should be verified.
Quick-jump to your persona
- Foreign SaaS / Digital Services Seller into Guatemala
- Foreign E-commerce Seller into Guatemala
- Foreign Importer / Physical Goods Seller
- Local Guatemalan Business
Foreign SaaS / Digital Services Seller into Guatemala
Sell SaaS or digital services into Guatemala from outside? Guatemala has not fully implemented a direct cross-border digital services VAT regime as of the date of this guide. B2B supplies operate under reverse-charge mechanics where the Guatemalan business self-assesses; B2C supplies from foreign vendors are operationally outside SAT’s direct collection channel in most cases. The framework continues to evolve — verify current status with a Guatemalan tax advisor before going live.
Are your Guatemalan sales actually in Guatemala’s tax base?
Place of supply for cross-border digital services follows the recipient’s location under general principles. Decreto 27-92 and SAT guidance address services rendered in Guatemala; cross-border digital service indicators include customer billing address in Guatemala, payment instrument issued by a Guatemalan institution, IP address resolving to Guatemala, and other commercially relevant location data.
Take Praha Beverages a.s., a Czech beverage company with EUR 60 million revenue globally specialising in premium Pilsner products and brewery-equipment monitoring software. Praha Beverages operates a B2B SaaS platform that tracks fermentation, distribution, and inventory for craft and mid-market breweries across Central America. Annual Guatemalan B2B revenue reached USD 320,000 in 2025 through eight Guatemala City and Antigua-area craft breweries. Praha Beverages’ Guatemalan B2B customers (NIT-registered) self-assess IVA on imported services under reverse-charge mechanics; SAT guidance and prevailing practice place this on the Guatemalan customer’s monthly return. Praha Beverages’s compliance burden in Guatemala is operationally low — no direct SAT registration is required under the current framework.
When the SAT clock starts running
Two operational triggers under the current framework.
The B2B reverse-charge trigger applies for imported services to NIT-registered Guatemalan businesses, where the Guatemalan customer self-assesses on its monthly IVA return.
The permanent-establishment trigger applies when an overseas company creates a Guatemalan presence — fixed place of business, dependent agent concluding contracts, or local sales infrastructure may create taxable presence under Guatemalan and applicable tax-treaty rules.
Operating model — primarily reverse-charge
Under the current framework, foreign SaaS sellers into Guatemala primarily operate under: B2B reverse-charge for NIT-registered customers (the Guatemalan customer self-assesses); operationally limited B2C exposure given the absence of a direct cross-border collection channel. Documentation discipline matters — NIT verification on B2B customers, contemporaneous records, monitoring for any framework changes. Verify the current status with a Guatemalan tax advisor.
What you charge, and on what
Under the current framework, foreign vendors typically do not charge IVA directly on cross-border digital services to Guatemala — the Guatemalan customer assesses under reverse-charge mechanics. Pricing should reflect the gross Guatemalan-side cost (foreign vendor price plus reverse-charge IVA cost to the Guatemalan customer).
What this actually costs
- Guatemalan tax advisor retainer: USD 2,500–8,500 per year.
- Documentation maintenance: USD 1,200–3,500 per year.
- Annual reasonableness review by Contador Público: USD 1,800–5,500.
- Direct registration setup (if framework evolves to require it): USD 5,000–15,000 initial + USD 10,000–28,000 annual.
What we see foreign SaaS sellers get wrong
Three patterns recur.
The first: assuming the LatAm-regional cross-border digital services template applies — Guatemala’s framework is operationally different from Chile, Colombia, Mexico, etc.
The second: ignoring NIT verification on B2B base — getting reverse-charge applicability wrong creates dual exposure.
The third: not monitoring framework evolution — Guatemala’s cross-border digital services framework continues to develop; periodic verification matters.
| Selling SaaS into Guatemala? TaxDo handles the SAT framework. Guatemala’s cross-border digital services VAT regime continues to develop — direct registration is not fully implemented as of the date of this guide. The reverse-charge framework, NIT verification, documentation discipline, and ongoing framework monitoring are the practical compliance themes. TaxDo’s Guatemala compliance pod handles the full lifecycle: current-framework analysis, NIT verification on B2B base, documentation maintenance, periodic framework review, and SAT correspondence — staffed by Contadores Públicos with active Guatemalan engagements. Free 30-minute Guatemala IVA scoping callIndicative quote within 48 hoursCoverage includes Guatemala + CACM + Caribbean + 80+ jurisdictions globallySingle English-language SOW; one invoice; one project manager |
Foreign E-commerce Seller into Guatemala
Ship physical goods into Guatemala from outside? You’re operating in the import-IVA channel. 12% IVA applies at the Intendencia de Aduanas (SAT) on customs value + DAI + Impuesto Específico on listed categories. The selling structure — your own platform, regional marketplaces (Mercado Libre regional presence, Amazon’s regional fulfilment), or direct-to-consumer — determines the IVA mechanics, not the rate.
Are you actually ‘selling into Guatemala’?
Three structural models exist for selling physical goods to Guatemalan consumers from outside the country. First: classic cross-border drop-ship — you ship from a foreign warehouse, the Guatemalan buyer is importer of record, 12% import IVA applies at SAT Aduanas on customs value + DAI + Impuesto Específico. Second: local stock model — you import goods in your own name into Guatemala, become the registered importer, charge Guatemalan 12% IVA on local sales, recover import IVA as credit. Third: marketplace-mediated — regional marketplaces operate under their own platform-tax assumptions; verify with the marketplace’s commercial team.
Where IVA actually bites
Import IVA at the border is the primary entry point. The customs value (CIF basis), plus DAI at the applicable CACM tariff line, plus Impuesto Específico on listed categories (alcoholic beverages, tobacco, cement, certain motor vehicles), forms the base for the 12% import IVA.
Customs valuation and the SAT Aduanas process
Guatemala’s Intendencia de Aduanas (within SAT) applies WTO valuation rules. Pricing must reflect arm’s-length terms; significant discounts on the declared value invite audit. Guatemala is a full member of the Central American Common Market (CACM, alongside El Salvador, Honduras, Nicaragua, Costa Rica) and CAFTA-DR (with US and Dominican Republic). Origin certificates under each framework reduce DAI on qualifying flows.
Maquila and Zonas Francas regimes
Guatemala operates two structurally important preferential regimes. Decreto 29-89 (Maquila Law) governs the Maquila regime — historically a major framework for textile and call-centre activity serving US markets, though the regime underwent significant revisions in 2015 and successive reforms. Decreto 65-89 governs Zonas Francas. Both regimes offer specific IVA, customs, and income-tax treatment under qualifying activity criteria. Current applicability should be verified given the post-2015 framework evolution.
What this actually costs
- Customs broker (Agente Aduanero) per shipment: USD 250–900.
- Customs duty (DAI): 0–15% on most categories under CACM tariff schedule; preferential rates under CAFTA-DR and other FTAs.
- Impuesto Específico on listed categories: variable rates by product.
- Import IVA: 12% on customs value + DAI + Impuesto Específico.
- Local fulfilment partner setup: USD 9,000–28,000.
- Maquila / Zonas Francas setup (if used): USD 28,000–100,000 initial + USD 20,000–55,000 annual operating.
What we see foreign e-commerce sellers get wrong
Three patterns recur.
The first: under-using CAFTA-DR and CACM origin preferences — origin documentation materially reduces DAI on qualifying flows.
The second: ignoring Impuesto Específico on listed categories — alcohol, tobacco, cement, vehicles attract additional layers beyond IVA + DAI.
The third: misjudging Maquila regime applicability post-2015 — the regime underwent significant revisions; relying on pre-2015 commentary creates exposure.
Foreign Importer / Physical Goods Seller into Guatemala
Importing into Guatemala for distribution, manufacturing, or onward sale? You’re in a B2B-physical channel that overlaps significantly with the e-commerce track on import mechanics, but the structural questions differ — registered Guatemalan entity vs cross-border supply, Maquila or Zonas Francas optionality, and integration with CACM and CAFTA-DR preferences.
The structural choice
Three models predominate. First: register a Guatemalan entity (Sociedad Anónima — SA — or Sociedad de Responsabilidad Limitada) as importer of record, obtain NIT, import in own name, recover import IVA as credit against domestic IVA on onward sales. Second: cross-border supply with Guatemalan buyer as importer of record — your invoices remain foreign, the Guatemalan buyer assumes import IVA at SAT Aduanas. Third: Maquila or Zonas Francas-based operation under Decreto 29-89 or Decreto 65-89 — preferential treatment under qualifying activity criteria.
CACM and CAFTA-DR framework
Guatemala is a full CACM member and CAFTA-DR signatory. Origin certificates under CACM frameworks reduce DAI on intra-Central American trade; CAFTA-DR provides preferences with US and Dominican Republic; bilateral FTAs (Guatemala-Mexico, Guatemala-Colombia, others) add further preferential routings. Documentation discipline at the SAT Aduanas interface matters.
Maquila and Zonas Francas — operational considerations
Decreto 29-89 (Maquila Law) and Decreto 65-89 (Zonas Francas) govern Guatemala’s preferential export-oriented regimes. Both underwent significant structural revisions in 2015 (Ley de Emergencia para la Conservación del Empleo and successive Decretos) repositioning qualifying activity, employment commitments, and incentive structures. Current applicability and qualifying conditions should be verified against post-2015 reforms before committing to setup.
What this actually costs
- Guatemalan SA / SRL setup: USD 4,000–12,000.
- NIT registration and FEL configuration: USD 1,500–4,500.
- Customs broker retainer: USD 3,500–14,000 per year.
- Monthly IVA compliance: USD 1,200–4,000 per month.
- Maquila / Zonas Francas setup: USD 28,000–100,000 initial + USD 20,000–55,000 annual.
What we see foreign importers get wrong
Three patterns recur.
The first: under-using CACM and CAFTA-DR preferences — origin documentation materially reduces DAI on qualifying flows.
The second: relying on pre-2015 Maquila and Zonas Francas commentary — the regimes underwent significant revisions; current rules should be verified.
The third: under-investing in FEL integration — Guatemala’s e-invoicing mandatory rollout has been expanding; non-compliance triggers operational disruption fast.
Local Guatemalan Business
Guatemalan resident business? All taxable activity is in scope from commencement. The structural choice is between Régimen General de IVA (standard 12% with full IVA mechanics) and Régimen de Pequeño Contribuyente (small operators under approximately GTQ 150,000 annual gross, flat 5% in lieu of IVA mechanics). The choice has material implications for invoicing, deduction rights, and ongoing compliance.
Choosing the right regime
Pequeño Contribuyente applies to qualifying small operators under specific gross-income thresholds (approximately GTQ 150,000 per year — verify current threshold) and activity-type criteria — flat 5% on gross income, no input IVA recovery, no standard credit-method IVA mechanics. Régimen General applies to all other taxpayers — standard 12% with input IVA recovery, monthly compliance, FEL e-invoicing.
Monthly compliance rhythm
Régimen General taxpayers submit monthly IVA returns through SAT’s Agencia Virtual by SAT-published schedule. Late filing triggers quetzal-denominated fines; late payment triggers interest plus surcharge percentage.
FEL electronic invoicing
Guatemala’s FEL (Factura Electrónica en Línea) framework has been progressively rolling out since 2018. Large taxpayer groups are in mandatory scope; broader coverage continues to expand through SAT Acuerdos. Verify your taxpayer group’s current scope status.
Annual ISR return
Corporate income tax — two regimes: Régimen sobre Utilidades de Actividades Lucrativas (25% on net profit) or Régimen Opcional Simplificado sobre Ingresos de Actividades Lucrativas (5–7% on gross income, no deductions). Annual return filed by SAT-published deadline.
What we see Guatemalan businesses get wrong
Three patterns recur.
The first: not exiting Pequeño Contribuyente at the right time — once gross-income thresholds are exceeded, continued operation under Pequeño creates retrospective exposure.
The second: misreading the FEL rollout timeline — taxpayers brought into mandatory scope must transition within the prescribed window.
The third: misapplying ISR regime — Régimen sobre Utilidades vs Régimen Opcional Simplificado has material differences; getting the choice wrong impacts ISR exposure.
Cross-track essentials
Penalty exposure table
Guatemala’s penalty framework under Decreto 6-91 (Código Tributario) calculates fines in quetzal-denominated amounts or as percentages of underpaid tax. Common categories:
- Late filing — quetzal-denominated fines per omitted return depending on category and delay.
- Late payment — interest at SAT-published rate plus surcharge percentage (approximately 100% over omitted amount under prevailing framework).
- Material under-reporting (omisión) — 50–100% of underpaid IVA.
- Fraudulent under-reporting (defraudación tributaria) — criminal prosecution with imprisonment exposure under Código Penal.
- Failure to issue compliant FEL — specific fine per occurrence plus operational disruption for mandatory-scope sectors.
Audit triggers
SAT deploys risk-based selection. Common triggers: IVA credit positions persisting over several periods, customs-import value variances vs declared resale price, sector-benchmark variance on margins, large transactions with non-resident affiliates, Pequeño Contribuyente threshold disputes, mismatch between IVA and ISR bases, repeated late filing, Maquila qualifying-activity issues.
Records retention
Guatemala requires 4 years of records from the date of the relevant filing under Código Tributario. Records must be available to SAT on request. Electronic format under FEL counts as primary record once the taxpayer is in operational scope.
Currency and translation
The Quetzal is freely convertible under Guatemala’s managed-float framework. Pricing in foreign currency for B2B contracts is permitted; invoices must show Quetzal equivalent for IVA calculations. Currency translation rules under SAT guidance use the BANGUAT (Banco de Guatemala) reference rate at the date of transaction.
Frequently Asked Questions
Is Guatemala’s 12% IVA among the lower rates in LatAm?
Yes — 12% is below Mexico (16%), Colombia (19%), Argentina (21%), Chile (19%), Uruguay (22%), and most other major LatAm economies. Combined with the Pequeño Contribuyente 5% alternative, Guatemala’s effective IVA exposure for many small operators is among the lower in the region.
How does Pequeño Contribuyente work?
Régimen de Pequeño Contribuyente applies to qualifying small operators under specific gross-income thresholds (approximately GTQ 150,000 per year — verify current limit) and activity-type criteria. Operators in scope pay a flat 5% on gross income in lieu of standard IVA mechanics. No input IVA recovery. Once thresholds are exceeded, transition to Régimen General is required.
Does Guatemala have a foreign digital services VAT regime?
Not fully implemented as of the date of this guide. B2B supplies operate under reverse-charge mechanics; B2C supplies from foreign vendors are operationally outside SAT’s direct collection channel in most cases. The framework continues to evolve — verify current status with a Guatemalan tax advisor.
How does FEL work?
FEL (Factura Electrónica en Línea) — Guatemala’s mandatory e-invoicing framework. Progressive rollout since 2018 with mandatory adoption expanded by sector and turnover. Large taxpayer groups now in mandatory scope. Verify your taxpayer group’s current status.
What’s the ISR corporate income tax rate?
Two regimes: Régimen sobre Utilidades de Actividades Lucrativas (25% on net profit) or Régimen Opcional Simplificado sobre Ingresos de Actividades Lucrativas (5–7% on gross income, no deductions). Annual return by SAT-published deadline.
Are Maquila and Zonas Francas regimes still active?
Yes, but both underwent significant structural revisions in 2015 and successive reforms. Current applicability, qualifying activity, employment commitments, and incentive structures should be verified against post-2015 framework before committing to setup. Pre-2015 commentary is structurally obsolete in material respects.
How do CACM and CAFTA-DR interact with import IVA?
CACM (Central American Common Market) reduces DAI on qualifying intra-Central American trade; CAFTA-DR adds preferences with US and Dominican Republic; bilateral FTAs (Guatemala-Mexico, Guatemala-Colombia, others) add further preferential routings. Reduced DAI lowers the base on which 12% import IVA is calculated.
What records must I keep and for how long?
4 years from the date of the relevant tax filing. Records must be available to SAT on request. Electronic format under FEL counts as primary record once in operational scope.
Where do I check current SAT guidance?
SAT’s portal at portal.sat.gob.gt — Acuerdos and Normativa section publishes current administrative guidance. Engage a Guatemalan Contador Público for material decisions.
Recent and upcoming changes
Guatemala’s IVA framework has been operationally stable in headline rate (12%) and architecture under Decreto 27-92. The structural themes have been: continued FEL e-invoicing rollout; periodic refinement of Maquila and Zonas Francas regimes following the 2015 reforms; ongoing development of cross-border digital services framework.
2025 — Continued FEL rollout
SAT continued bringing taxpayer groups into mandatory FEL scope through successive Acuerdos. Sectoral and turnover-based criteria determine operational deadlines.
2024 — Cross-border digital services framework development
SAT and Ministerio de Finanzas Públicas continue evaluating cross-border digital services framework approaches. Direct implementation remains pending as of the date of this guide; verify current status before going live.
Ongoing — Maquila and Zonas Francas refinements
Both regimes continue to be operationally adjusted under post-2015 framework. Qualifying activity, employment commitments, and incentive structures are subject to ongoing refinement.
Primary sources & further reading
- Superintendencia de Administración Tributaria (SAT) — primary tax authority portal; Acuerdos, Agencia Virtual, FEL guidance
- Intendencia de Aduanas (SAT) — customs authority; tariff lookup, import procedures, origin certification
- Decreto 27-92 — Ley del Impuesto al Valor Agregado
- Decreto 6-91 — Código Tributario (procedural framework, penalties, defraudación)
- Decreto 29-89 — Maquila Law (post-2015 reforms)
- Decreto 65-89 — Zonas Francas
- CAFTA-DR text and origin rules — US, Dominican Republic, Central America free trade framework
- SIECA — Central American Common Market Secretariat
Disclaimer
This guide is published by TaxDo as part of the Global Tax Hub. It is general commentary on Guatemalan indirect tax (IVA, Impuesto Específico) at the date shown and is not legal, tax, or accounting advice for any specific transaction or business. Guatemala’s IVA framework operates under Decreto 27-92, with the Pequeño Contribuyente regime, the FEL e-invoicing rollout, and the post-2015 Maquila and Zonas Francas frameworks. The cross-border digital services regime is not fully implemented as of the date of this guide and continues to develop. Statute, regulation, and SAT administrative guidance change; rates, thresholds, qualifying conditions, and operational deadlines should be verified against current Guatemalan sources before any decision is made. Engage a Guatemalan Contador Público or tax advisor for transaction-specific analysis. TaxDo accepts no liability for action taken in reliance on this guide.