What the Pequeño Contribuyente regime is, and how to invoice

When you open a business in Guatemala you have to pick a tax regime, and that decision determines how much you pay, which documents you issue, and how much accounting you will need. Pequeño Contribuyente — small taxpayer — is the regime designed for lower-turnover businesses.

This guide covers what it is, who it suits, which document it issues, and what happens the day your sales outgrow it.

What the Pequeño Contribuyente regime is

It is a simplified VAT regime. Instead of the normal VAT mechanics — where you charge VAT on sales, pay VAT on purchases and declare the difference — a Pequeño Contribuyente pays a single percentage on turnover.

That means two things in practice. Filing is far simpler. And the VAT you pay on purchases is not creditable: it is a cost, not a credit you recover.

There is an annual turnover ceiling for staying in the regime. The SAT sets that figure and it has been updated over the years, so confirm it with your accountant or directly on the SAT portal before deciding — do not take it from a blog, including this one.

Who it suits

The regime favours businesses with few formal purchases and high margins: professional services, trades, businesses selling mainly to final consumers.

It suits a business that buys a lot of invoiced stock much less well. If you buy Q40,000 a month with VAT included and cannot credit it, that VAT is a direct cost you would have recovered under the general regime.

The useful question is not "which one pays less tax?" but "how much purchase VAT am I giving up, and how much does the simplified rate save me?". That calculation is an afternoon with your accountant and settles the matter.

Which document it issues

A Pequeño Contribuyente does not issue an invoice with VAT broken out. It issues a Factura de Pequeño Contribuyente, which is a different document type.

This matters more than it looks, and it is where most of the problems start:

• Your business customers cannot credit VAT against your invoice. For some corporate buyers that alone is reason enough to buy from another supplier.
• Your point of sale has to be configured with the correct document type. Configuring it as general regime issues the wrong document.
• Changing regime is not retroactive. Documents issued under one regime stay as they are.

FEL applies here too

Being a Pequeño Contribuyente does not exempt you from electronic invoicing. The document is still electronic and still certified before it reaches the customer.

FlowPOS issues these documents through SAT-authorised certifiers, the same as any other FEL document. What changes is the type of document issued, not the mechanism.

In other words: you contract a certifier the same way, configure credentials the same way, and the cashier rings up the sale the same way. It is just that what comes out is a Factura de Pequeño Contribuyente rather than an invoice with VAT broken out.

What happens when you pass the ceiling

It is not a problem, it is a moment you need to see coming.

Passing the annual turnover ceiling means moving to the general regime. That change involves:

1. Updating the regime with the SAT. Your accountant handles it; there are deadlines.
2. Reconfiguring the point of sale to issue the correct document type. Issuing the wrong document after the change is a tax problem, not a system error.
3. Starting the full accounting the general regime requires.
4. Reviewing your prices. Under the general regime you charge VAT broken out. If your shelf price does not change, your margin falls.

Point 4 is the one that surprises people. A business charging Q45 as a Pequeño Contribuyente and still charging Q45 under the general regime is not charging the same: that amount now includes VAT that is not theirs.

How to know you are near the ceiling

The practical approach is to watch your year-to-date turnover, not the month. A business with strong seasonality can cruise for nine months and cross the line in November without seeing it coming.

If your point of sale gives you year-to-date sales, check once a month. If it does not, add up the monthly closes on a sheet. It takes five minutes and avoids a regime change done in a rush.

What to confirm with your accountant

This article describes how the regime works. It does not replace tax advice, and three things depend on your situation and on current rules:

• The exact turnover ceiling and the rate that applies today
• Whether your purchase mix makes the general regime better even below the ceiling
• The deadlines and requirements for changing regime

All three change over time. The principle does not.