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Honduras VAT on foreign digital services

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
Argentina 21% Apr 2018
Aruba 4% Jan 2023 -
Bahamas 10% Jan 2015 BSD 100,000
Barbados 17.5% Dec 2019 BBD 200,000
Bolivia 13% Nov 2022 -
Brazil 26.5% Jan 2026 n/a Regulations in parliament
Chile 19% Jun 2020 Nil
Colombia 19% Jan-18 Nil
Costa Rica 13% Oct 2020 Nil Withholding VAT option
Dominican Republic 18% 2023 Nil Currently withholding VAT
Ecuador 12% Sep 2020
El Salvador 13% 2022 - Replace Withholding VAT
Guatemala 12% TBC
Honduras 15% 2022 HNL 250,000
Panama 10% 2022 Withholding VAT
Paraguay 10% Jan-21 Nil Withholding VAT; 4.5% DST
Peru 18% 2022 Nil Withholding VAT
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


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