Quick overview
| Standard Rate | Reduced Rate | Other Rates |
| 13% | N/A | Zero-rated (0%) and exempt |
The local name for VAT in El Salvador is Impuesto a la transferencia de bienes muebles y a la prestación de servicios (ITBMS).
There is basically 1 VAT rate in El Salvador:
- Standard VAT rate is 13%
Recent developments
For more information about (recent) rate change developments in El Salvador, please click HERE.
Standard rate: 13%
This rate applies for all transactions that take place in El Salvador, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).
Zero rate (0%)
- Exportation of goods and services
- Transfer of goods and services made to individuals or businesses authorized under the Free Trade Zone Law and the International Services Law (provided that the goods and services are necessary for the authorized activity)
Exempt supplies of goods and services , no input VAT deduction
- Health services o
- Rental of houses and apartments
- Public land transport
- Importation by registered VAT taxpayers of machinery used as a fixed asset in the production of goods and services that are not exempt
- Education
- Financial & Insurance services
- Water
A global VAT/GST rate overview can be found here (note this is a work in progress).
This post was last updated on October 23, 2021.
