Paraguay VAT Rates 2026
Paraguay levies Value Added Tax as IVA (Impuesto al Valor Agregado). The standard rate is 10%, applied to most goods and services. Reduced rates of 5% apply to basic family-basket foodstuffs, medicines, agricultural products, real estate sales and rentals.
Current rates — 2026
| Type | Rate | Applies to |
|---|---|---|
| Standard | 10% | Most goods and services |
| Reduced | 5% | Basic family-basket foodstuffs, medicines, agricultural products, real estate sales and rentals |
| Zero-rated | 0% | Exports |
Registration and filing
| Registration threshold | No general threshold — registration with the RUC accompanies business formalisation |
| Tax authority | Dirección Nacional de Ingresos Tributarios (DNIT) |
| Filing frequency | Monthly returns via the Marangatu system |
Access rates via API
The TaxID API returns current VAT and GST rates for 200+ countries and territories. Use the /api/v1/rates/PY endpoint to get Paraguay data programmatically. Responses are cached for 24 hours.
curl http://localhost:3000/api/v1/rates/PY
# No authentication required for rate lookups
# Response:
# { "country_code": "PY", "tax_type": "vat",
# "standard_rate": 10, "reduced_rates": [5],
# "currency": "PYG", "last_updated": "2026-06-12" }Fetching the rate in code
// Fetch current Paraguay VAT rates (no auth required)
const rates = await fetch('http://localhost:3000/api/v1/rates/PY').then(r => r.json());
// → { standard_rate: 10, reduced_rates: [5],
// currency: 'PYG' }
applyRate(rates.standard_rate);About Paraguay VAT
Paraguay's 10% IVA is the lowest standard rate in South America, the centrepiece of a deliberately minimal "triple 10" tax model (10% IVA, 10% corporate, 10% personal) used to attract investment and maquila manufacturing. Real estate transactions enjoy the 5% rate on a reduced base, producing one of the region's lightest property tax burdens. Foreign digital platforms have IVA withheld by card issuers, and the new DNIT merged tax and customs administration in 2023.
VAT in Paraguay is administered by the Dirección Nacional de Ingresos Tributarios (DNIT).
Sources: PwC Worldwide Tax Summaries · DNIT Paraguay (accessed Jun 2026)
Rate history
- 20145% reduced rate consolidated for the basic family basket and real estate
Frequently asked questions
What is the VAT rate in Paraguay in 2026?
10% standard — South America's lowest — with 5% on staple foods, medicines and real estate.
Why are Paraguay's taxes so low?
The "triple 10" model (IVA, corporate and personal income all at 10%) is a long-standing strategy to attract regional investment and maquila industry.
Related concepts and guides: