El Salvador VAT Rate

El Salvador applies a Value Added Tax (VAT), locally called Impuesto al Valor Agregado (IVA), as a key component of its tax system. VAT is levied on the sale of goods and services, as well as imports, to help fund public expenditures. Understanding the VAT rates is essential for both businesses and consumers operating within the country.

VAT Rates Overview

Type of Rate	Rate (%)	Applies To
Standard Rate	13%	Most goods and services
Zero Rate	0%	Exports of goods and services
Exemptions	N/A	Certain goods and services like financial services, education, and public transport

Different VAT Rates on Goods and Services

Standard Rate (13%)
The general VAT rate of 13% applies to the vast majority of goods and services sold or provided within El Salvador.
Zero Rate (0%)
Exports of goods and services are taxed at a 0% rate to promote international trade competitiveness.
Exemptions
Certain services and goods are exempt from VAT, including educational services, financial operations like banking, and public transportation, meaning VAT is neither charged nor deductible on these.

Conclusion

El Salvador’s VAT system primarily revolves around a standard rate of 13%, with zero-rating and exemptions designed to support exports and key sectors. Proper knowledge of these VAT rates is vital for compliance and effective financial planning in El Salvador.

Browse Other Calculators:

VAT Rates Overview

Different VAT Rates on Goods and Services

Conclusion

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