• 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.

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