On August 9, 2022, the Congress of the Republic of Guatemala approved Decree 40-2022, which contains the Law on Incentives for Electric Mobility offering tax inducements on the importation, sale, and use of electric vehicles or those that run on hydrogen, as well as hybrid cars.
Tax benefits include exemption from the Value Added Tax on the purchase and sale of such vehicles, their parts and chargers (including private vehicles and collective passenger transport vehicles), and the Value Added Tax on their importation. In addition, the Vehicle Circulation Tax is exempt from payment for up to 5 years. Finally, vehicular charging service providers and the companies that assemble or produce such service resources in Guatemala will enjoy exemption from Income Tax.