PY Value-added tax (VAT) Rates Paraguay — Value-added tax (VAT)

General VAT Rate Other Rates Local Currency
10% 5% Guarani (PYG)

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 2017

Standard
10%
Reduced
5%
Other
Exempt

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).

Tax identification

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.

Registration
None

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.


PY Value-added tax (VAT) Rates Paraguay Tax Sources & Citations

  • EN: Paraguay Value Added Tax
  • RU: НДС
  • CN: 增值税
Note: This page is intended to be a simple overview of Paraguay's consumption tax structure, is provided as-is, and is not legal advice. Please let us know if any of the Paraguay tax information on this page is incorrect or out of date.
Citations:
  1. Paraguay Finance Administration (www.set.gov.py)
  2. Ernst & Young global VAT tax study, Paraguay (updated 2017)

  3. ← Back to World VAT Rates
** This Document Provided By SalesTaxHandbook **
Source: http://world.salestaxhandbook.com/py-paraguay