VAT calculator (Guatemala)
Add the 12% VAT to a price without tax or extract the VAT included in a final price, with the exact tax breakdown.
Calculation assumptions
- The single 12% VAT rate in force in Guatemala is applied (art. 10 of Decree 27-92). The rate used is shown in the calculation breakdown.
- VAT is rounded to 2 decimal places (half up); when extracting it, net + VAT always add up to the exact total.
What this calculator does
This calculator works with Guatemala’s VAT (IVA), whose single general rate is 12% under article 10 of Decree 27-92 (VAT Law). It solves the two everyday operations: adding VAT to a price without tax and extracting the VAT already included in a final price.
In both cases it shows all three figures — price without VAT, VAT, and price with VAT — so you can use them directly in invoices, quotes, or expense tracking.
Who it is for
- Merchants and professionals who issue invoices and need to calculate VAT on their prices.
- Taxpayers reviewing purchase invoices who want to verify the tax charged.
- Consumers who want to know how much tax they pay within a final price.
- Accountants and students who need the inverse operation: pulling the VAT out of a total.
What information you need
- To add VAT: the price without tax (net).
- To extract VAT: the final price with tax included (gross).
- The 12% rate is already configured per current law; you do not need to enter it.
How it is calculated
To add VAT, the net price is multiplied by 0.12. The result is rounded to 2 decimal places (half up) and added to the net to get the final price.
To extract VAT, the final price is divided by 1.12, which returns the net price. The VAT is the exact difference between the final price and the net, so net + VAT always reproduces the total to the cent.
Dividing by 1.12 (instead of multiplying by 0.12) is the key to extraction: the 12% applies to the price before tax, not to the total.
Formula
- Add VAT to a net price
VAT = net × 0.12 · total = net + VAT- Extract VAT from a final price
net = total ÷ 1.12 · VAT = total − net
Worked example
You invoice a Q100 service plus VAT and, separately, you want to know how much VAT a Q250 tax-included purchase carries.
- Add: VAT = Q100 × 0.12 = Q12.00; total = Q100 + Q12.00 = Q112.00.
- Extract: net = Q250 ÷ 1.12 = Q223.21 (rounded to the cent).
- Extracted VAT: Q250 − Q223.21 = Q26.79.
The service is invoiced at Q112.00 (Q12.00 of VAT). The Q250 purchase includes Q26.79 of VAT on a net of Q223.21.
How to interpret the result
VAT is a consumption tax: the final consumer pays it and the seller only collects and reports it. The net is what actually stays in your business.
When extracting VAT from a total, the tax is 12% of the net, which equals 10.7143% of the final price. That is why Q26.79 is not 12% of Q250.
Per-line rounding can differ by one cent from invoices that round on totals; both practices are normal.
Common mistakes
- Extracting VAT by multiplying the total by 0.12: that overestimates the tax. The correct way is dividing the total by 1.12.
- Applying 12% to exempt goods or services: the law includes exceptions; check whether your transaction is taxed.
- Confusing the general 12% rate with the 5% Small Taxpayer regime, which is computed on gross income.
- Forgetting that some prices already include VAT: adding 12% to a price that already carries it inflates the final price.
Frequently asked questions
What is the VAT rate in Guatemala?
The single general rate is 12%, set by article 10 of Decree 27-92 (VAT Law). There is also a Small Taxpayer regime with a 5% rate on gross income for those who qualify; this calculator uses the general 12% rate.
How do I get the VAT out of a price that already includes it?
Divide the final price by 1.12 to get the price without tax, then subtract: the difference is the VAT. For example, Q112 ÷ 1.12 = Q100 net and Q12 of VAT.
Why divide by 1.12 instead of subtracting 12%?
Because the 12% is calculated on the price before tax. A final price is 112% of the net: subtracting 12% of the total would remove too much.
Do all products pay VAT in Guatemala?
Not necessarily. The VAT Law provides for exempt transactions (for example, certain basic-basket foods, medicines, education, and exports). This calculator applies the general 12% rate for taxed transactions; check the official source or an accountant for your case.
What is the Small Taxpayer regime?
It is a simplified regime for taxpayers with annual gross income up to Q150,000, who pay a 5% VAT on that income instead of the general 12% regime. This calculator works with the general rate.
How do I add the 12% VAT to a price?
Multiply the price without tax by 0.12 to get the VAT and add it, or multiply directly by 1.12 to reach the total in a single step. For example, Q50 without VAT becomes Q50 × 1.12 = Q56.00, with Q6.00 of VAT.
What was the price before VAT?
Divide the VAT-inclusive price by 1.12 and you get the original price without tax (the taxable base). For example, if you paid Q224 with VAT included, the price before VAT was Q224 ÷ 1.12 = Q200.
Can I use the result for my VAT return?
It works as an arithmetic check for individual invoices. The return is filed on the totals of your purchase and sales books under SAT rules; rely on an accountant for the formal filing.
Sources
- Ley del Impuesto al Valor Agregado (IVA), Decreto 27-92, art. 10 — Congreso de la República de Guatemala (copia oficial alojada por el TSE) (Art. 10: tarifa única del 12% sobre la base imponible. Rate is verified-secondary: uniform across all sources including government-hosted copies, but the PDF could not be text-extracted for a verbatim quote. See docs/research/gt-labor-rules.md, section 1.)
- Ley del Impuesto al Valor Agregado (IVA), Decreto 27-92 — texto consolidado — Leyes Tributarias de Guatemala (Corroborates the 12% general rate and the 5% Pequeño Contribuyente regime.)
- Last reviewed:
- July 23, 2026
- Calculation version:
- 1.0.0
Important notice
The results of these calculators are informative estimates and may differ from official calculations. They do not constitute legal, tax, or financial advice. Always verify with the competent institutions or a professional.