What is the Small Taxpayer Regime and what is its sales ceiling?

The VAT Small Taxpayer Regime applies a 5 % rate to total gross income from sales or services in each calendar month (VAT Law, art. 47, as amended by Decree 4-2012). The value on a small-taxpayer invoice gives the buyer of the goods or services no right to an input VAT credit and is a cost for income-tax purposes (art. 49), relevant for an investor buying from suppliers in this regime. The annual income ceiling to register, which Decree 4-2012 set at Q150,000, has since the Law for the Integration of the Primary Productive and Agricultural Sector took effect (Decree 31-2024, 9 April 2025) been the sum of 125 non-agricultural minimum wages in force each year, excluding the incentive bonus: Q500,285.00 for 2026, according to SAT.