Paraguay — Value-added tax (VAT)
|General VAT Rate||Other Rates||Local Currency|
Paraguay's general VAT rate is 10%, with other rates including 5% that can apply to certain transactions. The Value-added tax (VAT) is administered by the Finance Administration (www.set.gov.py) in Asunción.
Paraguay has a 5% reduced VAT rate on foodstuffs and basic consumer goods; real estate; certain agricultural goods; and some basic financial services.
Paraguay is a member of the Mercosur Member trading bloc, which may affect international VAT collection and regulations.
Paraguay's consumption tax is called the Value-added tax (VAT), locally known as Impuesto al valor agregado (IVA), which was introduced in July 1992.
Paraguay VAT rates for 2018
Paraguay VAT number format
Businesses in Paraguay that are required to collect tax will be issued an identification number. Tax identification numbers can be verified with the Finance Administration, and will follow a certain format. The VAT number format is 120 (Version 3).
Fiscal number (format is numeric)
Paraguay VAT return periods
Businesses in Paraguay that are required to collect tax from consumers must file regular tax returns with the Finance Administration in Asunción. Paraguay's VAT return periods are:
Monthly and quarterly (only for agribusiness)
Paraguay Value-added tax (VAT) Thresholds
These are the revenue thresholds at which businesses in Paraguay are required to start collecting and remitting tax.
Recovery of VAT by non-established businesses
Non-established businesses are small, unincorporated businesses that sell taxable goods and may consist of a single individual, or several. Non-incorporated businesses in Paraguay are not required to collect taxes from the consumer.
Paraguay VAT Refunds
Many countries allow tourists, and others making purchases for export, to receive a VAT refund on exiting the country (or make purchases VAT free). While we don't have data on the Paraguay VAT refund program, more info can be obtained from the Finance Administration.
Paraguay Tax Sources & Citations
- EN: Paraguay Value Added Tax
- RU: НДС
- CN: 增值税
- Paraguay Finance Administration (www.set.gov.py)
- Ernst & Young global VAT tax study, Paraguay (updated 2018)
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