Individual - Other tax credits and incentives

Last reviewed - 04 December 2023

VAT credit

An income tax credit is granted for VAT paid on goods purchased and services contracted for one's exclusive personal use, up to the VAT rate (12% of net income).

The VAT credit is granted and applicable to the employee's income tax. The employee can apply all documented VAT (in Guatemala) paid on the employee's personal purchases of goods or services during the year with a maximum of 12% on the net income of the employee. No VAT in excess of the income taxes paid is refundable.

To claim this credit, the taxpayer is required to maintain on file the relevant original invoices and receipts for four years (statute of limitations).

The listing shall be submitted within the first ten working days in January of each year.