The Congress of the Republic of Guatemala has approved Decree Number 17-2025, the Law for the Facilitation of Tax Refund Compliance (hereinafter, the “Decree”), a comprehensive reform aimed at modernizing, streamlining, and organizing procedures for the refund and reimbursement of tax credits, primarily related to Value Added Tax (VAT).
The Decree introduces fiscal and administrative tools designed to strengthen the taxpayer–tax authority relationship, enhance transparency, reduce administrative discretion, and improve business liquidity through more efficient and predictable mechanisms.
Objectives of the Law
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Expedite tax refunds
The Superintendency of Tax Administration (SAT) must resolve refund requests within 30 to 60 business days, depending on the type of procedure. -
Implement a tax current account system
A system is created allowing taxpayers to use their credit balances to offset future tax obligations, avoiding the need to wait for cash refunds. -
Strengthen transparency, control, and fund availability
A special account is established at the Bank of Guatemala, funded with at least 8% of the VAT collected daily, exclusively allocated to refund tax credits. This ensures the availability of funds for approved refunds. -
Facilitate refunds for exporters and sales to exempt entities
A special early refund regime allows exporters and vendors to recover a significant portion of their tax credit monthly:- 75% for refund amounts up to Q500,000
- 60% for higher amounts
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Prevent tax fraud and strengthen oversight
The law introduces additional controls and clear grounds for rejecting refund requests, particularly when:- There are indications of tax crimes
- The actual payment of invoices generating the tax credit cannot be verified
Finally, the Decree includes key amendments to the Value Added Tax Law (Decree 27-92) and the Tax Code (Decree 6-91). It was declared a matter of national urgency, approved in a single debate, and entered into force on November 29, 2025.