Guatemala to Introduce Suggested Tax Declarations via Virtual Agency

Guatemala's tax administration is introducing a significant change for taxpayers, aiming to streamline compliance through its Virtual Agency (AV) platform. Beginning in September 2026, individuals and entities registered under the general regime for value-added tax (VAT) will receive suggested tax declarations. This initiative follows a similar rollout for special taxpayers in June 2026.

The core of this new system is the generation of proposed declarations by the Tax Administration (AT). These suggestions will indicate the values the AT believes should be declared. While this mechanism is designed to facilitate tax compliance, it is crucial for taxpayers to understand that the AT's proposed figures may not always perfectly match the legally required declarations. Differences can arise from various justified business circumstances.

Examples of such discrepancies include the sale of fixed assets treated as capital gains rather than ordinary sales, the issuance of credit notes, or purchases recorded in subsequent tax periods as permitted by VAT law. Other situations might involve electricity bills issued with the lessor's tax identification number. When these differences occur, the AV platform will generate tax alerts, potentially leading to future reviews.

Taxpayers are advised that starting around July of this year, many may receive electronic communications highlighting these discrepancies. Guatemalan law assigns the determination of tax obligations to the taxpayer through their declarations. This responsibility necessitates that declared figures are fully supported by documentation and legal arguments, especially when they differ from information held by the SAT (Superintendencia de Administración Tributaria).

Therefore, implementing a fiscal reconciliation of operations is essential. This process involves comparing the values in the suggested declaration with the company's accounting records. By identifying and documenting any differences, taxpayers can arrive at the correct amount of tax payable or tax credit. The methodology is akin to a bank reconciliation, where discrepancies between bank statements and company records are identified and justified to determine the accurate balance.