Guatemala has temporarily exempted specified fuels from petroleum distribution tax and VAT from 1 October to 31 December 2026, requiring distributors to pass the full tax savings on to consumers. The rules also suspend certain card transaction withholdings and establish inventory, invoicing, and compliance requirements.
Guatemala’s Ministry of Finance has published Decree 22-2026 (Law on Temporary Emergency Tax Exemption for Fuel Consumers), which was published in the Official Gazette on 30 September 2026.
Decree Number 22-2026 establishes a short-term exemption from specific petroleum distribution levies and the value-added tax for gasoline and diesel products. To protect citizens, the legislation mandates that these financial breaks are fully transferred to consumers at the pump.
The decree temporarily eliminates two primary fuel taxes to cushion consumers and productive sectors against international oil price surges.
Tax on the distribution of crude oil and petroleum-derived fuels
The exemption covers premium gasoline (gasolina superior), regular gasoline, diesel, and gas oil. The distribution of these fuels within Guatemala is fully exempt from the Tax on the Distribution of Crude Oil and Petroleum Derived Fuels (Impuesto a la Distribución de Petróleo Crudo y Combustibles Derivados del Petróleo (IDP) during the emergency period.
Value added tax
The exemption applies to premium gasoline, regular gasoline, diesel, gas oil, and fuel ethanol (alcohol carburante). It covers both imports and domestic sales, with transactions throughout the supply chain generating neither tax debits (débito fiscal) nor tax credits (crédito fiscal) for purchasers.
Card transaction withholdings
Decree 22-2026 also suspends card withholding requirements under Article 4 of Decree 20-2006 on fuel purchases made via credit or debit cards during the active period.
Consumer protection & price pass-through
The decree requires fuel stations and distributors to pass the full tax exemption on to consumers through equivalent reductions in retail prices. Electronic invoices must itemise the IDP and VAT exemptions per gallon, while gas stations must report daily prices to the Ministry of Energy and Mines (MEM). MEM, the Consumer Protection Directorate (DIACO), and the Tax Administration (SAT) will monitor compliance, with violations subject to sanctions and potential civil and criminal liability.
Administrative rules for implementing temporary fuel tax exemptions
Guatemala’s tax authority (SAT) also issued Resolution SAT-DSI-1596-2026, which establishes the administrative procedures for implementing the temporary IDP and VAT exemptions on premium gasoline, regular gasoline, diesel, gas oil, and fuel ethanol under Decree 22-2026.
The rules cover eligible fuels imported or sold domestically between 1 October and 31 December 2026. Tax-exempt inventory must continue to be sold to consumers without IDP or VAT, even after 31 December 2026, until the stock is exhausted.
Businesses must conduct physical inventory counts, maintain records distinguishing taxed and exempt stock, issue electronic invoices with the required exemption codes, and declare VAT exemptions on customs documents.
SAT is authorised to inspect and audit businesses throughout the supply chain to ensure compliance and that consumers receive the full tax benefit. Violations may result in penalties under the Tax Code and other applicable legislation.
