Global

Details

  • Service: Tax, Global Indirect Tax
  • Type: Regulatory update
  • Date: 2/17/2014

El Salvador - Overview of VAT system, VAT rate 

February 17:  Value added tax (VAT) in El Salvador is a tax based on the value-added method, and VAT applies on the price or remuneration agreed for the transfer of goods or provision of services, or the import customs value.

VAT is due on:


  • The sale by VAT taxpayers of movable goods located in El Salvador
  • Services specified in the law, provided they are performed in El Salvador
  • The final importation of chattels
  • The use or exploitation in El Salvador of services supplied by non-residents (i.e., import of services)

VAT rate

The rate of VAT is 13%. Exports of goods and services are “zero-rated.”


Read a report produced by KPMG and describing the VAT system in El Salvador, as in effect as of mid 2013.




©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now

Contact us