Paraguay VAT / Sales Tax
Detailed vat / sales tax rates and rules for Paraguay in 2026.
VAT / Sales TaxPYG
Paraguay levies a 10% VAT (IVA) on most goods and services. A reduced 5% rate applies to basic food items, medicines, agricultural products, and interest payments. Exports are zero-rated. Monthly IVA returns are required.
Standard Rate
10%
Registration Threshold
All businesses performing taxable activities must register
Reduced Rates
5% — Basic food items, medicines, agricultural products, interest on loans0% — Exports
How Paraguay VAT / Sales Tax compares
Paraguay’s standard VAT / sales tax rate of 10% is the 140th highest of 203 countries TaxAtlas tracks, below the global average of 13.7% and South America’s regional average of 16.4%.
Paraguay
10%
South America average
16.4%
Global average
13.7%
