Honduras ISV at a glance
| Standard rate | 15% ISV (Impuesto sobre Ventas) — Honduras’s standard indirect tax rate under Decreto 24-1963 (Ley del Impuesto sobre Ventas) and successive amendments |
| Higher rate | 18% — alcoholic beverages, tobacco products, first-class airline tickets, and certain other listed categories |
| Zero-rated supplies | 0% — exports of goods, qualifying exported services, supplies to ZIP (Zonas Industriales de Procesamiento), ZOLI (Zonas Libres) and ZADE (Zonas Agrícolas de Exportación) under qualifying conditions |
| Exempt supplies | Categories under Ley del ISV — basic foodstuffs (canasta básica), medicines, certain medical services, certain educational services, residential rentals below set thresholds, certain financial services, agricultural inputs in regulated channels |
| Tax architecture | National ISV administered by the Servicio de Administración de Rentas (SAR) under the Secretaría de Finanzas. No regional or municipal VAT-equivalent layer. |
| Domestic registration | Mandatory at commencement of taxable activity through SAR’s RTN (Registro Tributario Nacional). The Régimen General applies to standard taxpayers. The Régimen Simplificado del ISV applies for smaller taxpayers under specific gross-income thresholds (currently up to approximately HNL 250,000 per year). |
| Foreign digital services regime | Honduras 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 Honduran business self-assesses; B2C supplies from foreign vendors are operationally outside SAR’s direct collection channel in most cases. Verify current status. |
| Tax authority | Servicio de Administración de Rentas (SAR) — sar.gob.hn. Administers ISV, Impuesto sobre la Renta, and the electronic invoicing framework. |
| Filing — domestic regular taxpayers | Monthly ISV return through SAR’s electronic platform by the SAR-published monthly schedule, typically within the first half of the month following the tax period. |
| Filing — Régimen Simplificado | Periodic simplified declarations based on category. |
| Electronic invoicing | Honduras operates a phased electronic invoicing framework under successive SAR Acuerdos. Mandatory adoption has expanded by sector and turnover; current operational scope and large-taxpayer mandate should be verified. |
| Late-submission fine | Specific scaled fines under the Código Tributario — typically calculated as percentages of base salary unit or fixed lempira amounts. |
| Late-payment interest | Interest at SAR-published rate plus penalty surcharge. |
| Under-reporting penalty | Multa por evasión — typically 50–100% of underpaid ISV depending on circumstances. |
| Tax evasion | Criminal prosecution under Código Tributario provisions; imprisonment exposure for material amounts. |
| Records retention | 5 years from the date of the relevant tax filing under Código Tributario. |
| Currency | Honduran Lempira (HNL). USD ≈ 24.7 HNL. |
| Statute | Decreto 24-1963 (Ley del Impuesto sobre Ventas) and successive amendments. Código Tributario. Ley de ZIP/ZOLI/ZADE — Free Zone frameworks. SAR Acuerdos and administrative guidance. |
Do I need to comply? — 60-second check
Imagine you’re a regional logistics operator looking at Honduras — Puerto Cortés, Tegucigalpa, or San Pedro Sula. Three numbers tell you whether you need to register for ISV. HNL 250,000 (approximately USD 10,100) is the Régimen Simplificado threshold below which qualifying small operators use the simplified framework. The 15% standard rate applies to most supplies, with 18% on alcohol, tobacco, and certain other categories. And the country’s economic geography — Puerto Cortés as Central America’s deepwater container port, the maquila corridor around San Pedro Sula serving US apparel markets — makes Honduras structurally important for regional logistics and manufacturing.
Four questions, in order:
- Honduran-resident business with annual gross above HNL 250,000? Régimen General de ISV applies, with monthly compliance obligations. Local Honduran Business track.
- Overseas business supplying digital services to Honduran consumers? Foreign SaaS / Digital Services Seller track. Honduras has not fully implemented a direct cross-border digital services VAT regime — verify current status with a Honduran tax advisor.
- Overseas business shipping physical goods to Honduran consumers — your own store, regional marketplaces? Foreign E-commerce Seller track. Import ISV at 15% applies at customs (Dirección Adjunta de Rentas Aduaneras, DARA) alongside Derechos Arancelarios (DAI) and specific consumption taxes on listed categories.
- Overseas business importing goods into Honduras for distribution, manufacturing, or onward sale? Foreign Importer track. Import ISV at 15% applies at customs on customs value + DAI + applicable charges. The Central American Common Market (CACM) framework, CAFTA-DR, ZIP (Zonas Industriales de Procesamiento), ZOLI (Zonas Libres), and ZADE (Zonas Agrícolas de Exportación) regimes provide structural preferential treatment under specific conditions.
Two contextual points. First: Honduras’s terminology is operationally distinctive — the indirect tax is called ISV (Impuesto sobre Ventas, ‘sales tax’), not IVA. The mechanics are functionally equivalent to credit-method VAT, but the name reflects historical framing. Other countries using non-IVA naming include Panama (ITBMS) and Dominican Republic (ITBIS). Second: Honduras’s maquila corridor around San Pedro Sula is one of Central America’s most significant export-manufacturing platforms, primarily serving US apparel and textile markets under CAFTA-DR and the ZIP regime.
Quick-jump to your persona
- Foreign SaaS / Digital Services Seller into Honduras
- Foreign E-commerce Seller into Honduras
- Foreign Importer / Physical Goods Seller
- Local Honduran Business
Foreign SaaS / Digital Services Seller into Honduras
Sell SaaS or digital services into Honduras from outside? Honduras 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 Honduran business self-assesses; B2C supplies from foreign vendors are operationally outside SAR’s direct collection channel in most cases. Verify current status with a Honduran tax advisor before going live.
Are your Honduran sales actually in Honduras’s tax base?
Place of supply for cross-border digital services follows the recipient’s location under general principles. The Ley del ISV addresses services rendered or used in Honduras; cross-border digital service indicators include customer billing address in Honduras, payment instrument issued by a Honduran institution, IP address resolving to Honduras, and other commercially relevant location data.
Take Casablanca Mercantile SARL, a Moroccan trading company with USD 32 million revenue globally. Casablanca operates a B2B trade-management platform serving textile importers — connecting North African producers with Central American distributors and US-bound supply chains. Annual Honduran B2B revenue reached USD 220,000 in 2025 through six San Pedro Sula and Tegucigalpa-area textile and apparel distributors, plus three ZIP-based maquila operators. Casablanca’s Honduran B2B customers (RTN-registered) self-assess ISV on imported services under reverse-charge mechanics; ZIP-based customers operate under specific regime treatment that may differ from standard reverse-charge. Casablanca engaged a Honduran tax advisor to navigate the ZIP customer-base interactions and document the structure.
When the SAR clock starts running
Two operational triggers under the current framework.
The B2B reverse-charge trigger applies for imported services to RTN-registered Honduran businesses, where the Honduran customer self-assesses on its monthly ISV return. Note that ZIP/ZOLI/ZADE operators have specific treatment that may differ from standard reverse-charge.
The permanent-establishment trigger applies when an overseas company creates a Honduran presence — fixed place of business, dependent agent concluding contracts, or local sales infrastructure may create taxable presence under Honduran and applicable tax-treaty rules.
Operating model — primarily reverse-charge
Under the current framework, foreign SaaS sellers into Honduras primarily operate under: B2B reverse-charge for RTN-registered customers (the Honduran customer self-assesses); operationally limited B2C exposure given the absence of a direct cross-border collection channel; specific treatment for ZIP/ZOLI/ZADE customer-base segments. Documentation discipline matters.
What you charge, and on what
Under the current framework, foreign vendors typically do not charge ISV directly on cross-border digital services to Honduras — the Honduran customer assesses under reverse-charge mechanics. Pricing should reflect the gross Honduran-side cost (foreign vendor price plus reverse-charge ISV cost to the Honduran customer).
What this actually costs
- Honduran 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 Autorizado: USD 1,800–5,500.
- Direct registration setup (if framework evolves): 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 — Honduras’s framework is operationally different from Chile, Colombia, Mexico, etc.
The second: ignoring ZIP/ZOLI/ZADE-specific treatment on B2B base — Free Zone regimes create specific framework variations.
The third: not monitoring framework evolution — Honduras’s cross-border digital services framework continues to develop.
| Selling SaaS into Honduras? TaxDo handles the SAR framework. Honduras’s cross-border digital services VAT regime is not fully implemented as of the date of this guide. The reverse-charge framework, RTN verification, ZIP/ZOLI/ZADE customer-base interactions, and ongoing framework monitoring are the practical compliance themes. TaxDo’s Honduras compliance pod handles the full lifecycle: current-framework analysis, RTN and Free Zone verification on B2B base, documentation maintenance, periodic framework review, and SAR correspondence — staffed by Contadores Públicos with active Honduran engagements. Free 30-minute Honduras ISV scoping callIndicative quote within 48 hoursCoverage includes Honduras + CACM + Caribbean + 80+ jurisdictions globallySingle English-language SOW; one invoice; one project manager |
Foreign E-commerce Seller into Honduras
Ship physical goods into Honduras from outside? You’re operating in the import-ISV channel. 15% ISV applies at the DARA (Dirección Adjunta de Rentas Aduaneras) on customs value + DAI + specific consumption taxes on listed categories. The selling structure — your own platform, regional marketplaces, or direct-to-consumer — determines the ISV mechanics, not the rate. Honduras’s port infrastructure at Puerto Cortés (Central America’s deepwater container port) is structurally important — practical fulfilment models often leverage Cortés as an entry point.
Are you actually ‘selling into Honduras’?
Three structural models exist for selling physical goods to Honduran consumers from outside the country. First: classic cross-border drop-ship — you ship from a foreign warehouse, the Honduran buyer is importer of record, 15% import ISV applies at DARA on customs value + DAI + specific consumption taxes. Second: local stock model — you import goods in your own name into Honduras, become the registered importer, charge Honduran 15% ISV on local sales, recover import ISV as credit. Third: marketplace-mediated — regional marketplaces operate under their own platform-tax assumptions; verify with the marketplace’s commercial team.
Where ISV actually bites
Import ISV at the border is the primary entry point. The customs value (CIF basis), plus DAI at the applicable CACM tariff line, plus specific consumption taxes on listed categories (alcoholic beverages, tobacco, certain motor vehicles, fuel), forms the base for the 15% import ISV. Note that some categories attract 18% (alcohol, tobacco).
Customs valuation and the DARA process
Honduras’s DARA applies WTO valuation rules. Pricing must reflect arm’s-length terms; significant discounts on the declared value invite audit. Honduras is a full CACM member and CAFTA-DR signatory. Origin certificates under each framework reduce DAI on qualifying flows.
ZIP, ZOLI, and ZADE regimes
Honduras operates three structurally important preferential regimes for export-oriented activity. ZIP (Zonas Industriales de Procesamiento) governs the maquila regime — historically the framework for Honduras’s San Pedro Sula textile corridor serving US apparel markets. ZOLI (Zonas Libres) governs broader free zone activity. ZADE (Zonas Agrícolas de Exportación) governs agricultural export zones. Each offers specific ISV, customs, and income-tax treatment under qualifying activity criteria.
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.
- Specific consumption taxes on listed categories: variable rates by product.
- Import ISV: 15% standard (18% on alcohol/tobacco categories) on customs value + DAI + specific consumption taxes.
- Local fulfilment partner setup: USD 8,000–26,000.
- ZIP/ZOLI/ZADE 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 the higher 18% rate categories — alcohol and tobacco attract elevated ISV above the 15% standard.
The third: under-using Puerto Cortés routing — the deepwater port has structural cost and time advantages for Caribbean and US-East-Coast shipping lanes.
Foreign Importer / Physical Goods Seller into Honduras
Importing into Honduras for distribution, manufacturing, or onward sale? You’re in a B2B-physical channel with multiple structural options — ZIP for textile/apparel maquila serving US markets, ZOLI for broader free zone activity, ZADE for agricultural export, or standard Tegucigalpa / San Pedro Sula domestic-distribution setup.
The structural choice
Four models predominate. First: register a Honduran entity (Sociedad Anónima — SA — or Sociedad de Responsabilidad Limitada) as importer of record, obtain RTN, import in own name, recover import ISV as credit against domestic ISV on onward sales. Second: cross-border supply with Honduran buyer as importer of record — your invoices remain foreign, the Honduran buyer assumes import ISV at DARA. Third: ZIP-based maquila operation — export-oriented textile, apparel, or other manufacturing serving US markets under CAFTA-DR. Fourth: ZOLI or ZADE-based operation for other qualifying activities.
CACM and CAFTA-DR framework
Honduras is a full CACM member and CAFTA-DR signatory (with US, Dominican Republic, Guatemala, El Salvador, Nicaragua, Costa Rica). Origin certificates under each framework reduce DAI on qualifying flows. CAFTA-DR has been particularly significant for Honduras’s textile and apparel exports to US markets.
ZIP regime — operational deep-dive
ZIP (Zonas Industriales de Procesamiento) governs Honduras’s maquila regime — the operational framework for the San Pedro Sula textile and apparel corridor serving US markets primarily under CAFTA-DR yarn-forward origin rules. Qualifying activities include garment manufacturing, textile finishing, and related export-oriented operations. Within-ZIP operations benefit from: ISV exemption on qualifying inputs and supplies; income-tax exemption on ZIP-derived income for the regime duration; preferential customs treatment; specific labour and operational framework. Setup requires structural commitment — operational footprint, qualifying activity, employment commitments, and ongoing compliance.
ZOLI and ZADE alternatives
ZOLI (Zonas Libres) governs broader free zone activity — manufacturing, services, and selected commercial operations. ZADE (Zonas Agrícolas de Exportación) governs agricultural export zones — coffee, fruits, palm oil, and related agricultural value chains. Both offer specific tax treatment for qualifying activity, complementing ZIP’s textile/apparel focus.
What this actually costs
- Honduran SA / SRL setup: USD 3,500–11,000.
- RTN registration and electronic invoicing configuration: USD 1,500–4,500.
- Customs broker retainer: USD 3,500–14,000 per year.
- Monthly ISV compliance: USD 1,200–4,000 per month.
- ZIP/ZOLI/ZADE 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: misjudging ZIP vs ZOLI vs ZADE vs standard fit — the four structural options have materially different applicability by activity type.
The second: under-using CAFTA-DR yarn-forward origin rules for textile/apparel — Honduras’s ZIP corridor is one of the most operationally significant CAFTA-DR beneficiaries.
The third: under-using Puerto Cortés routing — the deepwater port has structural advantages for US-bound supply chains.
Local Honduran Business
Honduran resident business with gross income above HNL 250,000 (approximately USD 10,100)? Régimen General de ISV applies, with monthly ISV compliance and electronic invoicing where in scope. Smaller taxpayers below the threshold operate under Régimen Simplificado — verify the threshold and applicable simplified framework.
Choosing the right regime
Régimen Simplificado applies to qualifying smaller operators under approximately HNL 250,000 annual gross income — simplified framework. Régimen General applies to all other taxpayers — standard 15% with input ISV recovery, monthly compliance, electronic invoicing where in scope.
Monthly compliance rhythm
Régimen General taxpayers submit monthly ISV returns through SAR’s electronic platform by SAR-published schedule (typically within the first half of the month following the tax period). Late filing triggers fines under Código Tributario; late payment triggers interest at SAR-published rate plus surcharge percentage.
Electronic invoicing
Honduras operates a phased electronic invoicing framework under successive SAR Acuerdos. Mandatory adoption has expanded by sector and turnover. Verify your taxpayer group’s current scope status.
Annual Impuesto sobre la Renta
Corporate income tax — graduated framework with rates up to approximately 25% on net profit. Additional Aportación Solidaria applies for higher-profit taxpayers. Annual return filed by SAR-published deadline following fiscal year-end.
Higher-rate categories — alcohol, tobacco
18% rate applies on alcoholic beverages and tobacco products. Operators in these sectors must apply the higher rate on relevant supplies — the standard 15% does not apply. Mixed-activity businesses (e.g. restaurants serving both food and alcohol) must rate-split appropriately.
What we see Honduran businesses get wrong
Three patterns recur.
The first: not registering for ISV at the right point — crossing the HNL 250,000 threshold mid-year requires assessment of registration obligation timing.
The second: misapplying the higher-rate categories — alcohol, tobacco operators must apply 18%, not the standard 15%.
The third: under-investing in electronic invoicing configuration — taxpayers brought into mandatory scope must transition within the prescribed window.
Cross-track essentials
Penalty exposure table
Honduras’s penalty framework under Código Tributario calculates fines in lempira-denominated amounts or as percentages of underpaid tax. Common categories:
- Late filing — lempira-denominated fines per omitted return depending on category and delay.
- Late payment — interest at SAR-published rate plus surcharge percentage.
- Material under-reporting (evasión) — 50–100% of underpaid ISV.
- Fraudulent under-reporting (defraudación tributaria) — criminal prosecution under Código Tributario with imprisonment exposure.
- Failure to issue compliant electronic invoice — specific fine per occurrence plus operational disruption for mandatory-scope sectors.
Audit triggers
SAR deploys risk-based selection. Common triggers: ISV 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, ZIP/ZOLI/ZADE qualifying-activity disputes, mismatch between ISV and Income Tax bases, repeated late filing.
Records retention
Honduras requires 5 years of records from the date of the relevant filing under Código Tributario. Records must be available to SAR on request.
Currency and translation
The Lempira is freely convertible under Honduras’s managed-float framework. Pricing in foreign currency for B2B contracts is permitted; invoices must show Lempira equivalent for ISV calculations. Currency translation rules under SAR guidance use the BCH (Banco Central de Honduras) reference rate at the date of transaction.
Frequently Asked Questions
Why does Honduras call it ISV instead of IVA?
Impuesto sobre Ventas (‘Sales Tax’) — Honduras uses ‘ISV’ as the technical name for what is functionally equivalent to IVA / VAT in other jurisdictions. The mechanics are standard credit-method VAT; the naming reflects historical framing. Other countries using non-IVA naming include Panama (ITBMS) and Dominican Republic (ITBIS).
How do the higher rates (18%) work?
18% applies to alcoholic beverages, tobacco products, first-class airline tickets, and certain other listed categories. Operators in these sectors apply the higher rate on relevant supplies — standard 15% does not apply. Mixed-activity businesses must rate-split appropriately.
What is the ZIP regime and is it right for me?
ZIP (Zonas Industriales de Procesamiento) is Honduras’s maquila regime — operationally significant for textile and apparel manufacturing serving US markets primarily under CAFTA-DR yarn-forward origin rules. The San Pedro Sula corridor is one of Central America’s most operationally significant ZIP/maquila clusters. Setup requires structural commitment. Analyse landed economics before committing.
Does Honduras 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 SAR’s direct collection channel in most cases. Verify current status.
How does electronic invoicing work?
Honduras operates a phased electronic invoicing framework under successive SAR Acuerdos. Mandatory adoption has expanded by sector and turnover. Verify your taxpayer group’s current status.
What’s the corporate income tax rate?
Graduated framework with rates up to approximately 25% on net profit. Additional Aportación Solidaria applies for higher-profit taxpayers. ZIP/ZOLI/ZADE operations benefit from preferential income-tax treatment under their respective regimes.
How do CAFTA-DR and CACM interact with import ISV?
Both frameworks reduce DAI on qualifying-origin goods, which reduces the base on which 15% import ISV is calculated. CAFTA-DR has been particularly significant for Honduras’s textile and apparel sector under yarn-forward origin rules.
What’s Puerto Cortés and why does it matter?
Puerto Cortés is Central America’s deepwater container port — structurally important for trans-shipment, US-bound supply chains, and Caribbean routing. The port’s depth supports larger container vessels than most other Central American ports, providing cost and time advantages for certain shipping lanes.
What records must I keep and for how long?
5 years from the date of the relevant tax filing under Código Tributario. Records must be available to SAR on request.
Where do I check current SAR guidance?
SAR’s portal at sar.gob.hn — Acuerdos and Normativa section publishes current administrative guidance. Engage a Honduran Contador Público Autorizado for material decisions.
Recent and upcoming changes
Honduras’s ISV framework has been operationally stable in headline rate (15%) and architecture. The structural themes have been: continued electronic invoicing rollout; periodic refinement of ZIP/ZOLI/ZADE regimes; ongoing development of cross-border digital services framework.
2025 — Continued electronic invoicing rollout
SAR continued bringing taxpayer groups into mandatory electronic invoicing scope through successive Acuerdos.
2024 — Cross-border digital services framework development
Secretaría de Finanzas and SAR continue evaluating cross-border digital services framework approaches. Direct implementation remains pending.
Ongoing — ZIP/ZOLI/ZADE refinements
Honduras’s Free Zone regimes continue to be operationally adjusted under successive Acuerdos. Qualifying activity, employment commitments, and incentive structures are subject to ongoing refinement.
Primary sources & further reading
- Servicio de Administración de Rentas (SAR) — primary tax authority portal; Acuerdos, electronic filing platform, e-invoicing guidance
- Dirección Adjunta de Rentas Aduaneras (DARA) — customs authority; tariff lookup, import procedures, origin certification
- Decreto 24-1963 (Ley del Impuesto sobre Ventas) and successive amendments
- Código Tributario — procedural framework, penalties, defraudación
- Ley de ZIP — Zonas Industriales de Procesamiento
- Ley de ZOLI — Zonas Libres
- Ley de ZADE — Zonas Agrícolas de Exportación
- 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 Honduran indirect tax (ISV, specific consumption taxes) at the date shown and is not legal, tax, or accounting advice for any specific transaction or business. Honduras’s ISV framework operates under Decreto 24-1963 and successive amendments, with the ZIP, ZOLI, and ZADE Free Zone regimes, and the electronic invoicing rollout. The cross-border digital services regime is not fully implemented as of the date of this guide and continues to develop. Statute, regulation, and SAR administrative guidance change; rates, higher-rate categories (alcohol, tobacco at 18%), thresholds, qualifying conditions, and operational deadlines should be verified against current Honduran sources before any decision is made. Engage a Honduran Contador Público Autorizado or tax advisor for transaction-specific analysis. TaxDo accepts no liability for action taken in reliance on this guide.