The Honduras Revenue and Administrative Services has proposed imposing Value Added Tax on non-resident providers of digital or electronic services. No date for the implementation has been indicated, but end 2021 or start of 2022 seems most likely.
VAT Calc’s global VAT and GST on digital services blog keeps a live update on how countries are imposing indirect taxes on non-resident providers and electronic marketplaces.
The current VAT rate, (impuesto sobre ventas, ISV), rate in Honduras is currently 15%, with a raised rate of 18% on certain imports.
For other supplies, non-residents are required to appoint a fiscal representative if they have to VAT register in Honduras. There is a VAT registration threshold of HNL 250,000 per annum (approx €9,000 or USD 10,500). Monthly VAT returns are required for registered businesses, and these should be filed by the 10th of the following month along with VAT due.
Central and South America VAT on digital services
|Comments (click for details)||Rate||Date||Threshold||Comments|
|Bahamas||10%||Jan 2015||BSD 100,000|
|Barbados||17.5%||Dec 2019||BBD 200,000|
|Costa Rica||13%||Oct 2020||Nil||Withholding VAT option|
|Dominican Republic||18%||2023||Nil||Currently withholding VAT|
|El Salvador||13%||2022||-||Replace Withholding VAT|
|Paraguay||10%||Jan-21||Nil||Withholding VAT; 4.5% DST|
|Puerto Rico||10.5%||Jan 2020||$100,000; or 200 transactions||Marketplaces|
|Suriname||10%||Jan 2023||SRD 500,000|
|Uruguay||22%||Jan 2018||Nil||VAT and Withholding Tax|