Countries › Paraguay › Guide › 6. Taxes › IVA in Paraguay: 10 percent standard rate, 5 percent reduced rate, real estate, imports, exports and refunds
IVA in Paraguay: 10 percent standard rate, 5 percent reduced rate, real estate, imports, exports and refunds
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Last verified: 2026-10-28 · Status: Stable
Paraguay's value added tax (IVA) is charged at 10 percent on most sales of goods, services and imports, with a 5 percent rate for residential rent, real estate sales, listed staples, farm and livestock products and registered medicines. It is filed monthly as output IVA less input IVA; excess input credit carries forward but is not refunded, except for exporters, who can recover input IVA linked to exports within a 90 business day statutory window. Real estate sales are taxed on 30 percent of the price, casual importers pay on a base increased by 30 percent, and digital services from abroad are taxed when used in Paraguay.
USD figures use PYG 5,868.31 per US dollar, the Banco Central del Paraguay reference quotation for 28 October 2026 (planilla de cotizaciones of that day). Conversions are for orientation only.
Key facts
| IVA standard rate | 10 %Ley 6380/2019 art. 90, as of 2026-10-28 · in force |
|---|---|
| IVA reduced rate (staples, real estate, residential rent, listed farm products, medicines) | 5 %Ley 6380/2019 art. 90, as of 2026-10-28 · in force |
| Effective IVA on real estate sales (5 percent on 30 percent of price) | 1.5 %Ley 6380/2019 art. 85 num. 3 and 90 b), as of 2026-10-28 · in force |
| Increase of the import IVA base for casual importers | 30 %Ley 6380/2019 art. 85 num. 7, as of 2026-10-28 · in force |
| IVA settlement period | Monthly Ley 6380/2019 art. 86, as of 2026-10-28 · in force |
| Statutory maximum period to decide an exporter IVA refund | 90 business daysLey 6380/2019 art. 103, as of 2026-10-28 · in force |
| IVA on digital services used in Paraguay | 10 %Ley 6380/2019 art. 84 num. 5 and 90 g), as of 2026-10-28 · in force |
The rule
1. What is taxed. IVA applies to sales of goods, services (other than employment) and imports. Sales include own use by owners and staff, leases with purchase options, transfers of businesses and of shares and quotas, consignment and transfers of patrimonial rights; services include loans, works, insurance, intermediation, leasing, professions, transport, digital services and derivatives with a Paraguayan investor. Taxpayers include companies, branches of foreign entities, sole proprietors, professionals, landlords, habitual and casual importers and INR taxpayers.
Cost to do it: IVA registration comes with the RUC; there is no separate fee in the law.
Example: A software consultancy in Asunción charges IVA on its fees; its employees do not. / A foreign provider's services used in Paraguay are within IVA.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 80, 81 and 82, 2019-09-25 official text · verified 2026-10-28
Cost to do it: IVA registration comes with the RUC; there is no separate fee in the law.
Example: A software consultancy in Asunción charges IVA on its fees; its employees do not. / A foreign provider's services used in Paraguay are within IVA.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 80, 81 and 82, 2019-09-25 official text · verified 2026-10-28
2. Rates. 5 percent applies to rent of property used exclusively as housing, sales of real estate, rice, pasta, vegetable oil, yerba mate, milk, eggs, flour and iodised salt, listed agricultural, horticultural, fruit and livestock products and their primary derivatives, and medicines registered with the Health Ministry. Everything else is 10 percent. The Executive may raise or differentiate the reduced rates between 5 and 10 percent for some of those categories.
Cost to do it: IVA is included in advertised prices (art. 93).
Example: A PYG 11,000,000 invoice for consulting includes PYG 1,000,000 of IVA at 10 percent. / A US$1,874 consulting invoice includes US$170 of IVA.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 90, 2019-09-25 official text · verified 2026-10-28
Cost to do it: IVA is included in advertised prices (art. 93).
Example: A PYG 11,000,000 invoice for consulting includes PYG 1,000,000 of IVA at 10 percent. / A US$1,874 consulting invoice includes US$170 of IVA.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 90, 2019-09-25 official text · verified 2026-10-28
3. Special bases. Interest on loans is taxed on interest and charges, not principal. Real estate sales are taxed on 30 percent of the price or of each monthly instalment, giving an effective 1.5 percent. Imports are taxed on the customs value in guaraníes plus customs duties (even if suspended) and other pre release taxes; for casual importers that base is increased by 30 percent and the IVA is final. Digital services are taxed on the price.
Cost to do it: Import IVA is paid at customs before goods are released (art. 98).
Example: Sale of an apartment for PYG 1,000,000,000: base PYG 300,000,000, IVA at 5 percent PYG 15,000,000. / On a US$170,407 apartment the IVA is US$2,556, 1.5 percent of the price.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 85, 2019-09-25 official text · verified 2026-10-28
Cost to do it: Import IVA is paid at customs before goods are released (art. 98).
Example: Sale of an apartment for PYG 1,000,000,000: base PYG 300,000,000, IVA at 5 percent PYG 15,000,000. / On a US$170,407 apartment the IVA is US$2,556, 1.5 percent of the price.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 85, 2019-09-25 official text · verified 2026-10-28
4. Monthly settlement and credit rules. IVA is settled monthly as output tax less input tax. Input IVA is deductible only on purchases linked to taxed operations, that represent a real outlay and are backed by valid invoices with the buyer's RUC; mixed costs are prorated. Excess input credit carries forward without refund, input IVA on cars for professionals is limited to 30 percent, and on closure the remaining credit is lost. Even exempt taxpayers must file returns, and share sales above nominal value and FX trading margins must be reported.
Cost to do it: Unused credit at closure becomes a cost; it is never refunded (art. 91).
Example: Output IVA PYG 50,000,000 less input IVA PYG 35,000,000: pay PYG 15,000,000 for the month. / Output US$8,520 less input US$5,964: pay US$2,556.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 86, 88, 89, 91 and 96, 2019-09-25 official text · verified 2026-10-28
Cost to do it: Unused credit at closure becomes a cost; it is never refunded (art. 91).
Example: Output IVA PYG 50,000,000 less input IVA PYG 35,000,000: pay PYG 15,000,000 for the month. / Output US$8,520 less input US$5,964: pay US$2,556.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 86, 88, 89, 91 and 96, 2019-09-25 official text · verified 2026-10-28
5. Exemptions. Sales of foreign currency, securities and shares, assignment of receivables, books and newspapers, fuels, gambling, business reorganisations and contributions of assets to capital are exempt, as are exports of goods, interest on securities, bank deposits, export freight, education and short urban public transport, and imports of goods whose sale is exempt and of travellers' baggage. Non profit entities are exempt except for listed commercial activities. Ley 6380 art. 100 still refers to capital goods under the repealed Ley 60/90; Ley 7548/2025 art. 4 now grants those IVA exemptions to approved projects.
Cost to do it: Exempt sellers lose their input credit, which becomes an IRE cost (art. 91).
Example: Contributing a warehouse to a new S.A.'s capital is IVA exempt. / Exporting soybeans is IVA exempt (with limited refund, see below).Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional; Ley Nº 7548/2025, Ley 6380 art. 100; Ley 7548 art. 4 b) and c), 2019-09-25 official text · verified 2026-10-28
Cost to do it: Exempt sellers lose their input credit, which becomes an IRE cost (art. 91).
Example: Contributing a warehouse to a new S.A.'s capital is IVA exempt. / Exporting soybeans is IVA exempt (with limited refund, see below).Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional; Ley Nº 7548/2025, Ley 6380 art. 100; Ley 7548 art. 4 b) and c), 2019-09-25 official text · verified 2026-10-28
6. Exporter refunds. Exporters recover input IVA on goods and services linked to exports, first against output IVA and then by refund request filed monthly in chronological order from the month after the return deadline and within the prescription period. Raw agricultural exports and their first processing (flour, crude oil, expellers, pellets) cannot recover the IVA on the purchase of those goods, only on other inputs. The refund is capped at 10 percent of the export customs value, may require an external tax auditor's certificate, and must be decided within 90 business days of acceptance; an accelerated route exists against a bank guarantee or insurance bond.
Cost to do it: External tax auditor certification and, for the fast track, a guarantee for up to 90 business days.
Example: Exports with customs value of PYG 2,000,000,000: refund cap PYG 200,000,000 for that period, excess carried to later requests. / On US$340,814 of exports the refundable IVA is capped at US$34,081.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 101, 102 and 103, 2019-09-25 official text · verified 2026-10-28
Cost to do it: External tax auditor certification and, for the fast track, a guarantee for up to 90 business days.
Example: Exports with customs value of PYG 2,000,000,000: refund cap PYG 200,000,000 for that period, excess carried to later requests. / On US$340,814 of exports the refundable IVA is capped at US$34,081.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 101, 102 and 103, 2019-09-25 official text · verified 2026-10-28
7. Digital services and foreign providers. Digital services are deemed rendered in Paraguay when used there, judged by the customer's IP address or SIM country code, billing address, bank account, or the issuer of the card used. When paid through banks, card processors, exchange houses, cooperatives or similar, those intermediaries collect the IVA. The administration can also require final IVA withholding on sales and services by INR taxpayers.
Cost to do it: Collected through the payment chain; the foreign provider does not need a RUC for this route.
Example: A PYG 100,000 streaming subscription paid by a Paraguayan card bears IVA of PYG 10,000 collected by the card issuer. / A US$20 software subscription paid by a Paraguayan card bears US$2 of IVA.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 81 num. 2 i), 84 num. 5, 85 num. 6 and 97, 2019-09-25 official text · verified 2026-10-28
Cost to do it: Collected through the payment chain; the foreign provider does not need a RUC for this route.
Example: A PYG 100,000 streaming subscription paid by a Paraguayan card bears IVA of PYG 10,000 collected by the card issuer. / A US$20 software subscription paid by a Paraguayan card bears US$2 of IVA.Ley Nº 6380/2019 De modernización y simplificación del sistema tributario nacional, Art. 81 num. 2 i), 84 num. 5, 85 num. 6 and 97, 2019-09-25 official text · verified 2026-10-28
| Operation | Rate | Base | Effective |
|---|---|---|---|
| General goods and services | 10% | Price | 10% |
| Residential rent | 5% | Monthly rent | 5% |
| Sale of real estate | 5% | 30% of price | 1.5% |
| Listed staples, farm and livestock products, registered medicines | 5% | Price | 5% |
| Loans | 10% | Interest and charges | 10% of interest |
| Import by registered importer | 10% or 5% | Customs value plus duties and taxes | Per product |
| Import by casual importer | 10% or 5% | Same base plus 30% | Final |
| Exports of goods | Exempt | Refund of linked input IVA |
IVA rates and bases (Ley 6380/2019 art. 85 and 90)
Worked example
- A distributor imports goods with a customs value of PYG 500,000,000 (US$85,203) and pays duties of PYG 50,000,000.
- Import IVA at 10 percent on PYG 550,000,000: PYG 55,000,000 (US$9,372), paid before release and creditable.
- It sells them for PYG 800,000,000 plus IVA of PYG 80,000,000; the month's IVA due is PYG 25,000,000 (US$4,260).
- Had it been a casual importer, the IVA would have been on PYG 715,000,000, that is PYG 71,500,000, and not creditable.
Step by step
- Register for IVA with the RUC and obtain stamped (timbrado) or electronic invoicing authorisation from the DNIT.
- Issue an invoice for every sale and demand one, with your RUC, for every purchase.
- File the monthly IVA return on the DNIT calendar date for your RUC ending and pay the balance.
- Exporters: keep customs export documents booked, file monthly refund requests in chronological order and consider the guarantee backed fast track.
- Track mixed use input IVA and apply the proration.
- Before closing a company, use up input credit: it is lost on closure.
Common traps
- Excess input IVA is never refunded to non exporters, including on closure (art. 88 and 91).
- Raw farm exports cannot recover IVA on the purchased product itself (art. 101).
- Transfers of shares and businesses are within the concept of sale, although sales of shares are exempt; share premiums must still be reported (art. 81 and 96).
- Goods moving without a remission note or invoice can be seized (art. 94).
- Exempt treatment under the old Ley 60/90 references in art. 100 now depends on a Ley 7548 approval.
Sources
- DNIT, Ley Nº 6380/2019 text
- BACN, Ley Nº 6380/2019 (promulgation 25 September 2019)
- BACN, Ley Nº 7548/2025 investment incentives
- Banco Central del Paraguay, reference exchange rates (28 October 2026)
Related pages
- taxes/digital-services-taxation
- taxes/customs-duties-on-imports
- taxes/excise-tax-isc
- trade/importing-and-exporting
- real-estate/buying-property-and-foreign-ownership
- /country/paraguay/
- /calendar/
- Live dashboard
Related: Paraguay country profile · live dashboard · central bank and release calendar · our posts on X · where Argentina is involved, see The Argentine Thread guide
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