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Guatemala VAT Guide 2026

Guatemala's Value Added Tax (IVA — Impuesto al Valor Agregado) is a flat rate of 12% on most goods and services. Exports are zero-rated (0%). The registration threshold is GTQ 150,000 in annual turnover. Guatemala operates a mandatory electronic invoicing system (FEL — Facturación Electrónica en Línea) for all registered taxpayers. The SAT administers IVA under the Ley del IVA (Decreto 27-92).

Overview — IVA in Guatemala

IVA in Guatemala is governed by the Ley del Impuesto al Valor Agregado (Decree 27-92) and administered by the SAT. The tax applies to the sale of goods, provision of services, and imports. Guatemala operates a credit method system: registered businesses charge IVA on their sales (output IVA) and can recover IVA paid on their purchases (input IVA). The net difference is remitted to SAT monthly. Businesses with annual turnover exceeding GTQ 150,000 must register for IVA. Voluntary registration is permitted for businesses below the threshold.

IVA Rate Structure

The standard IVA rate in Guatemala is 12% on taxable supplies. Key rate categories:

  • Standard rate — 12% on most goods and services
  • Zero-rated (0%) — exports of goods and services, international transport
  • Exempt — medical services, educational services, financial services (interest), insurance, residential rent, books and periodicals, basic food staples

Input IVA on purchases used for exempt activities cannot be recovered. Input IVA on zero-rated exports can be reclaimed, making exports truly tax-free.

Registration Threshold & FEL Electronic Invoicing

Businesses with annual turnover of GTQ 150,000 or more must register for IVA with SAT. Guatemala has implemented a mandatory electronic invoicing system (FEL) for all registered taxpayers. All invoices must be issued through SAT-authorised electronic invoicing software or through the SAT's own platform. The FEL system transmits invoice data in real time to SAT, enabling immediate tax verification and reducing evasion. Non-compliance with FEL requirements can result in fines and suspension of operations. Businesses may use SAT's free invoicing tool or purchase certified software from private providers.

IVA Filing & Payment

IVA-registered businesses must file returns monthly by the 10th of the following month. The IVA return calculates output IVA (12% of sales) minus input IVA (12% of purchases) to arrive at the net IVA payable. If input IVA exceeds output IVA in a given month, the excess may be carried forward to offset future IVA liabilities or refunded subject to SAT review. Payment is due at the time of filing. Late filing attracts penalties of 5–25% of the tax due plus interest at the legal rate. SAT conducts regular IVA audits and may cross-check invoice data between buyers and suppliers through the FEL system.

FAQs

Do I need to charge IVA if my turnover is below GTQ 150,000?

No, registration is only compulsory if annual turnover meets or exceeds GTQ 150,000. Businesses below the threshold may voluntarily register. Unregistered businesses must not charge IVA on their invoices.

Can I recover input IVA on purchases?

Yes, IVA-registered businesses can claim input IVA on purchases used for taxable activities. The credit method allows you to net input IVA against output IVA each month.

What is the FEL system?

FEL (Facturación Electrónica en Línea) is the mandatory electronic invoicing system in Guatemala. All invoices must be generated through SAT-authorised electronic means and transmitted to SAT in real time.

Disclaimer

This guide provides general information about Guatemalan IVA for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Guatemalan tax advisor or SAT for advice specific to your situation. InvestmentKit does not provide tax advice.