Guide to Guatemala VAT Taxability and Rates
Updated 3 months ago
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Guatemala's VAT applies to the supply of goods and services within the country. Understanding how taxability works helps ensure your transactions are accurately taxed and reported.
Standard VAT Rate
The standard rate is 12%, which applies to both B2B and B2C SaaS transactions.
Tax Rates by Transaction Type:
Transaction Type | VAT Rate |
|---|---|
B2B SaaS (resident business) | 12% |
B2C SaaS (resident business) | 12% |
B2B SaaS (non-resident business selling to Guatemalan consumers) | 12% |
B2C SaaS (non-resident business selling to Guatemalan consumers) | 12% |
Exports (goods or services leaving Guatemala) | 0% (zero-rated) |
B2B Cross-border imports (buyer in Guatemala, seller unregistered abroad) | Buyer self-assesses via reverse charge |
Key Taxability Rules:
Domestic B2B and B2C transactions: The seller charges 12% VAT and remits it to SAT.
Exports: Zero-rated at 0%. Note that the destination country's VAT may still apply.
B2B cross-border imports (reverse charge): If the foreign seller is not registered in Guatemala, the Guatemala-based buyer is responsible for self-assessing and remitting the VAT.
Non-profit organizations: VAT applies unless the non-profit provides a VAT exemption certificate issued by SAT.
No Digital Services Tax (DST): Guatemala does not impose a separate Digital Services Tax.
No tax holidays: Guatemala does not offer any VAT holidays.
How B2B is Determined
If the buyer provides a valid VAT ID (NIT), the transaction is treated as B2B. If no VAT ID is provided, it is treated as B2C.
What is Reverse Charge?
Reverse charge is a VAT mechanism where the registered buyer, rather than the seller, is responsible for accounting for and paying the VAT. The seller does not charge VAT on the invoice. Instead, the buyer self-assesses the tax in their own VAT return and may claim input tax credit if eligible. In Guatemala, reverse charge applies when an unregistered foreign seller supplies services to a VAT-registered Guatemalan business.
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