What is IVA in Guatemala?
IVA (Impuesto al Valor Agregado) is Guatemala's 12% value-added tax applied to the sale of goods and services. It is regulated by the VAT Law, Decree 27-92, and its reforms. Almost every invoice you issue or receive in Guatemala carries this tax, so knowing how to add it and extract it saves you mistakes in quotes, purchases, and client prices.
To calculate Guatemala's 12% VAT, multiply the net price by 0.12. To add VAT, multiply by 1.12. To remove VAT from a total that already includes it, divide the total by 1.12.
How to add 12% VAT
VAT = Net price × 0.12
Total with VAT = Net price × 1.12
If a product or service costs Q100 without VAT:
- VAT: Q100 × 0.12 = Q12.00
- Total with VAT: Q100 × 1.12 = Q112.00
How to remove VAT from a price that includes it
Net price = Total with VAT ÷ 1.12
Included VAT = Total with VAT − Net price
If the final price includes VAT and you paid Q112:
- Net price: Q112 ÷ 1.12 = Q100.00
- Included VAT: Q112 − Q100 = Q12.00
Quick table for adding VAT
| Net price | VAT 12% | Total with VAT | |---|---|---| | Q50.00 | Q6.00 | Q56.00 | | Q100.00 | Q12.00 | Q112.00 | | Q250.00 | Q30.00 | Q280.00 | | Q500.00 | Q60.00 | Q560.00 | | Q1,000.00 | Q120.00 | Q1,120.00 | | Q5,000.00 | Q600.00 | Q5,600.00 |
Quick table for removing included VAT
| Total with VAT | Net price | Included VAT | |---|---|---| | Q56.00 | Q50.00 | Q6.00 | | Q112.00 | Q100.00 | Q12.00 | | Q280.00 | Q250.00 | Q30.00 | | Q560.00 | Q500.00 | Q60.00 | | Q1,120.00 | Q1,000.00 | Q120.00 | | Q5,600.00 | Q5,000.00 | Q600.00 |
Common examples
Example 1 — Q500 net sale: a service is quoted at Q500 without VAT. VAT = Q500 × 12% = Q60; invoice total = Q560.
Example 2 — Q560 final price with VAT: separate base and tax: base = Q560 ÷ 1.12 = Q500; included VAT = Q60.
Example 3 — pricing for a business: build your price with margin first, then add VAT (×1.12). Margin and VAT are different things; if your client withholds VAT at source, estimate the net after withholding with the withholding calculator.
When you quote a price, state clearly whether the amount is without VAT, with VAT included, or whether VAT will be added at the end. That difference changes the total the client pays and the net income you receive.
VAT-exempt products
Under Decree 27-92, exempt items include: generic medicines, milk and dairy, cereals, legumes, vegetables, fresh fruits, bread, corn tortillas, salt, sugar, coffee, and educational materials. Exempt sales do not carry VAT and do not generate fiscal credit on purchases.
This calculator is an educational tool for the general 12% rate. Exemptions, special regimes, exports, and VAT withholding at source have their own rules; confirm your specific case with your accountant or SAT before filing.
Frequently asked questions
Guatemala's VAT (IVA) rate is 12%, established by Decree 27-92. To add it, multiply by 1.12; to extract it, divide by 1.12.
To extract VAT from a price that includes it, divide the total by 1.12. The difference is the VAT. Example: Q112 ÷ 1.12 = Q100 net + Q12 VAT.
Build the price with margin and VAT (×1.12), then if withholdings apply estimate net pay in the ISR/VAT withholding calculator. Margin ≠ VAT. Confirm rates with your accountant or SAT.
Exempt products include: generic medicines, milk and dairy, cereals, legumes, vegetables, fresh fruits, bread, tortillas, salt, sugar, and coffee.
Related calculators
- Guatemala VAT credit and debit: monthly settlement between sales and purchases
- Guatemala ISR and VAT withholding: how much clients withhold from your invoices
- Guatemala small taxpayer: special-invoice regime without VAT credit
- Sale price with margin and VAT: set prices with margin and tax together