-
Business consulting services
Our business consulting services can help you improve your operational performance and productivity, adding value throughout your growth life cycle.
-
Business process solutions
We can help you identify, understand and manage potential risks to safeguard your business and comply with regulatory requirements.
-
Business risk services
The relationship between a company and its auditor has changed. Organisations must understand and manage risk and seek an appropriate balance between risk and opportunities.
-
Cybersecurity
As organisations become increasingly dependent on digital technology, the opportunities for cyber criminals continue to grow.
-
Forensic and investigation services
At Grant Thornton, we have a wealth of knowledge in forensic services and can support you with issues such as dispute resolution, fraud and insurance claims.
-
Mergers and acquisitions
Globalisation and company growth ambitions are driving an increase in M&A activity worldwide. We work with entrepreneurial businesses in the mid-market to help them assess the true commercial potential of their planned acquisition and understand how the purchase might serve their longer- term strategic goals.
-
Recovery and reorganisation
Workable solutions to maximise your value and deliver sustainable recovery
-
Transactional advisory services
We can support you throughout the transaction process – helping achieve the best possible outcome at the point of the transaction and in the longer term.
-
Valuations
We provide a wide range of services to recovery and reorganisation professionals, companies and their stakeholders.
-
IFRS
The International Financial Reporting Standards (IFRS) are a set of global accounting standards developed by the International Accounting Standards Board (IASB) for the preparation of public company financial statements. At Grant Thornton, our IFRS advisers can help you navigate the complexity of financial reporting from IFRS 1 to IFRS 17 and IAS 1 to IAS 41.
-
Audit quality monitoring
Having a robust process of quality control is one of the most effective ways to guarantee we deliver high-quality services to our clients.
-
Global audit technology
We apply our global audit methodology through an integrated set of software tools known as the Voyager suite.
-
Corporate and business tax
Our trusted teams can prepare corporate tax files and ruling requests, support you with deferrals, accounting procedures and legitimate tax benefits.
-
Direct international tax
Our teams have in-depth knowledge of the relationship between domestic and international tax laws.
-
Global mobility services
Through our global organisation of member firms, we support both companies and individuals, providing insightful solutions to minimise the tax burden for both parties.
-
Indirect international tax
Using our finely tuned local knowledge, teams from our global organisation of member firms help you understand and comply with often complex and time-consuming regulations.
-
Innovation and investment incentives
Dynamic businesses must continually innovate to maintain competitiveness, evolve and grow. Valuable tax reliefs are available to support innovative activities, irrespective of your tax profile.
-
Private client services
Our solutions include dealing with emigration and tax mitigation on the income and capital growth of overseas assets.
-
Transfer pricing
The laws surrounding transfer pricing are becoming ever more complex, as tax affairs of multinational companies are facing scrutiny from media, regulators and the public
-
Tax policy
Tax policies are constantly evolving and there are a number of complex changes on the horizon that could significantly affect your business.
Indirect tax snapshot
Please click on each section to expand further:
Value Added Tax (VAT) is the main type of indirect taxation in GT.
It is a tax on consumption which is applied during the production and distribution process to most goods and services. It is also applied to goods entering the country. Although VAT is ultimately borne by the consumer by being included in the price paid, the responsibility for charging, collecting and paying it to the tax authority at each stage of the process rests with the business making the supply ie the sale.
A business registered for the tax will charge VAT (output tax) on its sales, and incur VAT (input tax) on its purchases (including any VAT paid at importation). The difference between the output tax and the deductible input tax in each accounting period will be the amount of VAT payable by the business to the tax authority. Where the input tax exceeds the output tax, a refund can be claimed only for the case of exporters of goods or services.
A transaction is within the scope of GT VAT if the following conditions are met:
- it is a supply of goods or services.
- it takes place in GT.
- it is made by a taxable person. For these purposes, a taxable person is a person or
entity who is making this type of activities in the country.
- it is made in the course or furtherance of any business carried on by that person or
entity.
There are three rates of VAT that are applied to goods and services in GT; the standard rate, the reduced rate (for Small-Tax Payers and Agriculture Activities), and the zero rate. In addition, some goods and services are exempted from the tax.
Businesses that make exempt supplies are unable to claim all of the input tax that they incur, so the VAT paid to suppliers would be a 'real' cost.
Most goods imported into the GT from outside are subject to VAT. The tax will have to be paid by the importer at the time of importation. Where the importation is for business purposes and the importer is registered for VAT, it may be possible to reclaim the tax (subject to certain rules).
It is also important to note the interaction between VAT and Customs duty. Customs duty is levied in order to bring the cost of goods produced outside the country to the same level as those produced within it. Once duty (and VAT) has been paid by the importer, the goods are in 'free circulation' and they can then be released for use in the market. Unlike other indirect taxes, such as VAT, once duty has been paid it is not usually recoverable by the importer. It therefore represents a bottom line cost to the importing business if it cannot be passed on in higher prices. It is therefore very important to ensure that the correct rate of duty is applied. VAT is charged on the value of the importation, including any custom duty.
A 'person' who either makes or intends to make taxable supplies of goods or services in the course or furtherance of a business must register for VAT. A business should be registered.
For these purposes, a 'person' includes any legal entity. Therefore, once a person is registered for VAT, all of his business activities will be covered by the registration - even if the nature of some of those activities are very different.
A penalty may be imposed by the tax authority if a business fails to register at the correct time.
The normal VAT registration limit does not apply to businesses who are not established in GT, but for the purposes of the tax are making taxable supplies there. Those businesses will need to register for VAT as soon as they commence trading in GT, irrespective of the level of turnover.
The registration is connected with have or not PE in GT.
No, at this moment GT does not have rules on digital businesses.
No, if the business does not have a PE in the country. Otherwise, the PE has to appoint a legal representative person.
VAT returns normally cover an accounting period of on month, ending on the last day of a calendar month, the tax return should be submitted on a monthly basis.
All VAT returns have to be submitted within 30 days of the end of the relevant vat period. As all returns and payments have to be submitted electronically.
A default surcharge penalty may be imposed by the tax authority if VAT returns are not submitted on time, or the related tax is not paid by the due date.
The penalty is on the 50% of the late payment tax plus interests (13% annual).
If the taxpayer is appointed as VAT withholding agent, it has to withhold a 15% or 85% of the rate (12%) on the payment of domestic services or goods acquired. This withholding tax does not apply between agents. The withholding taxes should be submitted to the tax office in the next month during the next 15 business days.
I other hand, if the company acquires services or good with domestic providers who are not registered taxpayers, an special invoice should be issued. In this case, the company has to withhold 5% of income tax on each purchase and the 12% of VAT. Both withholding should be submitted to the tax office in the following month, the income tax withholding during the first 10 business days, and the VAT withheld in during the next month.
If a company appropriates of the VAT a penal matter could be initiated by the tax office.
No. only the registered taxpayers can request the refund of the VAT. And the refund applies only for exporters of services or goods, also some entities that sale to some Government entities can claim a VAT refund.
A VAT invoice must show:
• an invoice number provided by the tax office, due these form are electronically
• the seller's name and address
• the seller's VAT registration number
• the invoice date
• the date of issuing
• the customer's name and address
• the customer’s tax id (if applicable)
• a description sufficient to identify the goods or services supplied to the customer
• the rate of any cash discount
• the total amount of the sale, the VAT should be included in the price.
Where a VAT invoice includes zero-rated or exempt goods or services, it must:
• show clearly that there is no VAT payable on those goods or services
VAT invoices only can be issued on electronic basis. The method used to ensure the authenticity of origin, the integrity of content and legibility of the invoices is a business choice and can be achieved by any business controls which create a reliable audit trail between an invoice and a supply of goods or services.
Yes, the taxpayers have to send the information related to its VAT Book on semestral basis to the tax office on electronic basis.
Contact us
For further information on indirect tax in Guatemala please contact:
Edy Oswaldo Pérez |
|
