Gradual VAT for Tourism Activities

A statement by the National Chamber of Tourism reads:

Amendments to the Solidarity Tax Project mitigate negative impact on tourism
• Gradual payment of VAT for tourism activities will take place within three years.
• Rental of vehicles, trikes and quad bikes, travel agencies, tour operators, tourist guides, tourist transportation and activities such as canopy, rafting, surfing, kayaking, boating, bungee jumps and cable cars will pay 14% VAT gradually.

The National Chamber of Tourism (CANATUR) considers that the reforms accepted by the Ministry of Finance Tax to the Solidarity Project for the tourism sector will contribute to mitigating the impact felt in the industry by the direct application of Value Added Tax (VAT) on tourism activities.

After five rounds of negotiations between representatives of CANATUR, members of other chambers and associations in the sector with the Finance Minister Fernando Herrero, approval was given for the gradual adoption of the VAT payment over three years, consisting of applying 4% in the first year, increasing to 10% in the second and 14% the third year.

The gradual payment for this item applies to the activities of rental of cars, trikes and quad bikes, travel agencies, tour operators, tourist guides, tourist transportation and activities such as canopy, rafting, surfing, kayaking, boating , cable cars and bungee jumps.

CANATUR believes that it is unfair that despite its request for walking tours, tree top bridges, climbing activities and visits to national parks and private reserves to be entered in the list of activities benefitting from the gradual payment of VAT, the Treasury did not accept the suggestion and will apply the direct tax of 14%.

More on this topic

Reforms to the Costa Rican Tax System

August 2011

The reforms include provision for a fine for non payment of partial income taxes, facilitation of tax refunds, and streamlining of tax collections on luxury homes.


The Legislature has approved the "Project for urgent reforms of the tax administration", the first of the proposals included in the tax reform promoted by the Chinchilla administration in the package entitled "Solidarity Tax Act."

The Pros and Cons of the Tax Reform in Guatemala

January 2012

The bill provides that no amounts may be deducted from VAT on purchases, and increases the tax base for the payment of income tax.

The Guatemalan government’s tax reform law is ready, and contains several new points: employees ability to deduct VAT from annual purchases from their taxes has been eliminated, the tax base has been increased, and the road tax for vehicles has been doubled.