As described further below, the press conference focused on a Digital Economy Compliance (DEC) system that Latin American countries can use to facilitate VAT registration and compliance by nonresident suppliers. Guatemala plans to adopt the DEC system to encourage nonresident suppliers to register and comply with the VAT rules on a voluntary basis, although the Ministry of Finance also is preparing legislation that would introduce a mandatory VAT withholding mechanism that would apply to transactions involving supplies of digital goods and services if the voluntary approach is not sufficiently effective.
Source: Deloitte
