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, regulated by Decree 27-92.
How to calculate IVA
Add VAT
Total with VAT = Net price × 1.12
Extract VAT from price
Net price = Total ÷ 1.12 VAT = Total - Net price
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.
Regional comparison
Guatemala has one of the lowest VAT rates in Central America. Honduras charges 15%, Costa Rica 13%, and El Salvador 13%.