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Honduras VAT Guide 2026

Honduras imposes the Impuesto sobre Ventas (ISV) at a standard rate of 15% on most goods and services. A reduced rate of 12% applies to certain basic goods and services. Exports are zero-rated (0%). The tax is administered by the Servicio de Administración de Rentas (SAR). Registration is required for businesses exceeding certain turnover thresholds.

Overview — ISV in Honduras

The Impuesto sobre Ventas (ISV) is Honduras's value added tax, governed by the Ley del Impuesto sobre Ventas. It applies to the sale of goods, provision of services, and importation of goods. SAR administers the tax through its online portal. Businesses with annual turnover exceeding HNL 300,000 must register for ISV. The tax is an indirect tax ultimately borne by the final consumer. Registered businesses charge ISV on their sales and can credit ISV paid on their purchases (input tax) against ISV collected (output tax).

ISV Rate Structure

Honduras applies a multi-rate ISV structure:

  • Standard rate — 15% on most goods and services
  • Reduced rate — 12% on certain basic goods (some food products, agricultural inputs, medicines)
  • Zero rate — 0% on exports of goods and services
  • Exempt supplies — basic food staples, education, healthcare, financial services, residential rent, and public transport

Certain goods and services are exempt from ISV including unprocessed foodstuffs, medical services, educational services, financial services, and residential property rental. Exports are zero-rated, allowing exporters to reclaim input ISV.

Registration Threshold & Compliance

Businesses with annual turnover of HNL 300,000 or more must register for ISV with SAR. Registration is done through SAR's online system. Once registered, the business must issue ISV invoices showing the tax component separately. ISV returns are filed monthly by the 15th of the following month. Late filing attracts penalties and interest. SAR conducts periodic audits and may perform inspections to verify compliance.

ISV Filing & Payment

ISV-registered businesses must file returns monthly by the 15th of the following month. The return includes output ISV charged on sales, input ISV paid on purchases, and the net amount payable. Payment is due at the time of filing. If input ISV exceeds output ISV, the excess may be carried forward or claimed as a refund, subject to SAR review. Digital filing is mandatory through SAR's online platform.

FAQs

Do I need to charge ISV if my turnover is below HNL 300,000?

No, registration is only compulsory if annual turnover meets or exceeds HNL 300,000. Small businesses below the threshold are not required to charge ISV but may voluntarily register.

Can I recover input ISV?

Yes, ISV-registered businesses can claim input ISV on purchases used for taxable supplies. Input ISV is netted against output ISV in the monthly return.

What is the penalty for non-compliance?

Failure to file on time incurs fines starting at HNL 1,000 plus interest at 1% per month on unpaid tax. More severe penalties apply for tax evasion.

Disclaimer

This guide provides general information about Honduran ISV for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Honduran tax advisor or the Servicio de Administración de Rentas for advice specific to your situation. InvestmentKit does not provide tax advice.