The Superintendence of Tax Administration (SAT) announced the taxpayers registered in the small VAT taxpayer regime, which as of April 9 increases the maximum amount of annual income.
The new maximum ceiling for small taxpayers established in Decree 31-2024, is equivalent to 125 non-agricultural minimum wages without taking into account the current incentive bonus, which by 2025 is Q3 thousand 723.05 based on the one of the economic constituency one contemplated by the Department of Guatemala.
Until April 8, the maximum amount was Q150 thousand in annual gross income.
Decree 31-2024 contains the Law for the Integration of the Primary and Agricultural Productive Sector and that reforms the Value Added Tax Law (VAT), among other provisions.
The SAT adds that taxpayers who want to be in the small taxpayer regime may do so to comply with their tax obligations, for which they must follow the data update procedure in virtual agency, this provided that their income does not exceed the maximum mentioned amount of total income for the sale of goods and provision of services.
The tax rate for the small taxpayer is 5% and the invoices do not generate VAT fiscal credit for their customers.
However, it also reports that, from exceeding the amount of Q465 thousand, either in the previous fiscal period corresponding from January to December 2024 or in the current by 2025, when updating your data in the Unified Tax Registry System (RTU) it will require you to make the change to the General VAT regime. This has a 12%tax rate, and its invoices generate tax credit.
Will there be taxpayers migration from other regimes?
Recently consulted the SAT -collection mayor, Érick Echeverría, if they consider that there will be a lot of migration of taxpayers who are in other VAT regimes towards that of small taxpayer, the official explained that the analysis must be seen in an integral way.
He explained that it could be transferred considering the new ceiling or maximum limit of annual income, however, other complementary situations will have to VAT.
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The registration or migration of taxpayers will be seen based on the impulse and the response that the implementation of these reforms is having in practice, he added.
Although some negative effect on collection can be observed in a nominal way, but it is also necessary to see, what negotiation capacity will the economic agents have with their clients that these invoices do not generate the right to tax credit.
It should also be considered that the SAT detected that taxpayers registered in the small taxpayer regime, when reaching the maximum revenue limit of Q150 thousand annually that it was in force before, had an incentive to stop billing, but now with the new limit (Q465 thousand per year) it is very likely that these economic agents continue invoicing and that represents that they continue to pay their tax. But, the official said last week that it is still rushed to be able to have conclusions regarding the response that taxpayers may have.
Systems may be slow by adaptation
The SAT also reported that derived from the implementation of the provisions of the new Law, the entity’s computer systems are in the corresponding adaptation and response process, and that if the taxpayer finds slowness in the services or difficulties for its use, it must communicate it to the numbers 1550 or to the WhatsApp 2217.
👩💼👨🏫 Taxpayer
O #Rtu changing to the general regime of #Iva. pic.twitter.com/jqkfzahcjf
– SAT Guatemala (@Satgt) April 9, 2025