12 February 2016
Global Tax Alert
News from Americas Tax Center
Guatemala’s tax
credits for VAT
generated in 2012
expire in 2016
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Exporters and taxpayers selling goods and services to tax-exempt entities
should review their tax credits for value-added tax (VAT) generated in 2012
in Guatemala because, under Decree No. 4-2012, those credits will expire in
2016.
Background
Exporters and taxpayers selling goods and services to tax-exempt entities may
request a reimbursement in cash of the tax credits for VAT directly related to
those activities on a monthly, quarterly or semi-annual basis, depending on the
elected regime, from the Tax Authorities.
On 26 January 2012, Guatemala enacted Decree No. 4-2012, which modified
Section 47 of the Tax Code to limit the right to request the reimbursement to
four years, beginning on the date on which the taxpayer is entitled to request
the reimbursement for the first time.
The Decree does not limit the right of taxpayers to offset tax debits generated
by local operations with tax credits for VAT that were not requested for the first
time in four years and accumulated. Therefore, such credit may be carried over
in the monthly VAT reports until it is depleted.
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Global Tax Alert Americas Tax Center
For additional information with respect to this Alert, please contact the following:
Ernst & Young, S.A., Guatemala City
• Manuel Ramirez
• Eduardo Rubin
+502 2386 2407
+502 2386 2428
Ernst & Young, S.A., San José, Costa Rica
• Rafael Sayagués
• Alexandre Barbellion
+506 2208 9880
+506 2208 9841
Ernst & Young Limited Corp., Panama City
• Luis Eduardo Ocando • María Carolina Sánchez • María José Luna +507 208 0144 +507 208 0190 +507 208 0147 manuel.ramirez@cr.ey.com
eduardo.rubin@gt.ey.com
rafael.sayagues@cr.ey.com
alexandre.barbellion@cr.ey.com
luis.ocando@pa.ey.com
maria.carolina.sanchez@pa.ey.com
maria.luna@pa.ey.com
Ernst & Young LLP, Latin American Business Center, New York
• Ana Mingramm
• Enrique Perez Grovas
• Pablo Wejcman
+1 212 773 9190
+1 212 773 1594
+1 212 773 5129
Ernst & Young LLP, Latin American Business Center, London
• Jose Padilla
+44 20 7760 9253
ana.mingramm@ey.com
enrique.perezgrovas@ey.com
pablo.wejcman@ey.com
jpadilla@uk.ey.com
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