Tax rate by region Guatemala

Select region

SaaS VAT in Guatemala: A Comprehensive Overview

Businesses in Guatemala offering SaaS services should be aware of the country’s Value Added Tax (VAT) system. Implemented in 1992, the VAT applies to most goods and services, including digital products like SaaS. The standard VAT rate in Guatemala is 12%, and businesses must register for VAT if their annual turnover exceeds a specific threshold. VAT registration involves obtaining a Taxpayer Identification Number (TIN) and filing monthly VAT returns. When charging customers for SaaS services, businesses must include the 12% VAT in the price and report it on their VAT returns. Keeping accurate records of invoices, contracts, and other relevant documents is crucial for compliance purposes. Guatemala also mandates e-invoicing for VAT, requiring businesses to issue electronic invoices for all transactions. It is recommended to consult with a tax professional to ensure complete understanding and compliance with Guatemala’s VAT regulations.

Guatemala

Guatemala implemented a VAT system in 1992 to improve tax compliance and enhance public revenue.

Official government link: Superintendencia de Administración Tributaria

12.00%

E-products and services VAT/Sales tax rate

Reduced tax rate product categories

Guatemala does not have specific reduced tax rates for digital goods and services; the standard VAT rate is 12%.

Exempted product categories

Some educational materials and services might be exempt

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

A non-resident company must register for VAT if providing taxable goods or services within Guatemala.

Online registration possible

Yes

Local representative needed

Registration procedure

Gather Documentation: Collect necessary documents including identification (NIT), proof of registration in the home country, and local representative details.
Complete Registration Form: Fill out the VAT registration application form provided by SAT.
Submit Application: Submit the completed form and required documents to SAT either online or in person.
Receive VAT Number: After approval, receive your VAT registration number (NIT).

List of digital and electronic services liable for tax

Digital advertising services
E-books and electronic publications
Streaming services for music and video
Software as a Service (SaaS)
Online gaming services

Penalties

Late filing penalties which can be a fixed amount or a percentage of the unpaid tax amount.
Fines for incorrect or incomplete declarations, typically ranging from fines proportional to the underreported VAT.

Registration threshold

No threshold specified

Filing interval

Monthly

Filing deadline

The deadline is the 15th of the month following the reporting period.

E-invoicing requirements

Yes

Record keeping

Records must be kept for a minimum of 5 years, including invoices, contracts, and any documentation related to taxable supplies.

Effortless Subscription Management and Billing

SaaS VAT Compliance In Guatemala: Deadlines and Record-Keeping

Maintaining compliance with Guatemalan VAT regulations requires attention to detail and adherence to specific deadlines. Businesses must file their VAT returns electronically on a monthly basis, and the deadline for payment is the 15th of the following month. Failure to comply with these deadlines may result in penalties and interest charges.

Accurate record-keeping is essential for demonstrating compliance with VAT regulations and supporting any potential audits. Businesses should maintain detailed records of invoices, contracts, and any other documentation related to taxable supplies for at least five years. This documentation will be required for verifying VAT calculations and ensuring compliance with the applicable tax laws.

Prioritizing Compliance and Avoiding Penalties

The importance of proper VAT management in Guatemala cannot be overstated. Failing to comply with VAT regulations can lead to significant financial penalties and legal consequences. Businesses should prioritize establishing a robust system for accurate VAT calculation, reporting, and payment to avoid potential issues. Additionally, leveraging e-invoicing technology can streamline VAT compliance and ensure efficient record-keeping. Considering the complexity of VAT regulations, collaborating with a tax professional can provide valuable guidance and ensure complete compliance with Guatemalan tax laws.

Ready to get started?

We’ve been where you are. Let’s share our 18 years of experience and make your global dreams a reality.

Talk to an Expert