Título IV. De los inmuebles y de los vehiculos

In cases of alienation of land motor vehicles of the model of the current year, of the following year and of the year prior to the current year, and of all kinds of maritime and air vehicles, the Value Added Tax shall be paid according to the rate established in Article 10 of this Law. For these cases, the tax shall be paid in accordance with the table of taxable values prepared annually by the Tax Administration, approved by the Board of Directors of the Superintendency of Tax Administration, and published in the official gazette and on the website of the Tax Administration in the month of November of each year.

The model year of land motor vehicles shall be determined by verification of the Vehicle Identification Number (VIN, for its acronym in English), which must physically appear on vehicles entering the national territory and in the import documents.

In cases of sale, exchange or inter vivos donation of land motor vehicles that are not of the model of the current year, of the year following the current year or of the year prior to the current year, with the exception of motorcycles, the tax shall be applied in accordance with the following scale of specific rates:

Model Fixed rate

From two to three years prior to the current year One thousand quetzales (Q.1,000.00)

From four or more years prior to the current year Five hundred quetzales (Q.500.00)

In cases of sale, exchange or inter vivos donation of motorcycles that are not of the model of the current year, of the year following the current year or of the year prior to the current year, the tax shall be applied according to the annual model, applying the following scale of fixed specific rates:

Model Fixed rate

From two to three years prior to the current year Three hundred quetzales (Q.300.00)

From four or more years prior to the current year Two hundred quetzales (Q.200.00)

For cases of vehicles that have sustained total loss or destruction, and that are the object of sale, exchange or inter vivos donation, and that are already registered, the rate established in Article 10 of this Law shall not apply, and the maximum fixed specific rate established in the preceding paragraphs of this article shall apply. Such circumstance of total loss or destruction must be certified by an insurance company duly authorized to operate in the country.

In cases of importation of land motor vehicles including motorcycles, the Value Added Tax shall be paid according to the rate established in Article 10 of this Law. For these cases, the tax base for land motor vehicles of models prior to the model year of the current year is the value stated in the original invoice, issued by the seller of the vehicle abroad, provided that it complies with the legal requirements established by law in the country of its issuance and that the authenticity of said invoice can be verified by the Tax Administration, in addition to proving and documenting payment of the invoiced value through the means made available by the banking system.

In case of failure to comply with what is required in the preceding paragraph, the tax base of the tax shall be the value of the vehicle appearing in the table of taxable values which the Superintendency of Tax Administration must prepare annually, which the Board of Directors of that Superintendency must approve and publish in the official gazette and on the website of the Tax Administration in the month of November of each year.

The tax base for land motor vehicles of the models of the current year and of the year following the model of the current year shall be the import value defined as the addition of cost, insurance and freight (CIF, for its acronym in English) reported by the manufacturers or importers.

For the first sale or exchange of immovable property or for the other cases of transfers of immovable property, the tax base is constituted by the sale price stated in the invoice, public deed or that recorded in the fiscal registry, whichever is greater. If the seller is a registered taxpayer of this tax and his activity is the construction or sale of immovable property, including land with or without construction, the tax base is the sale or exchange price or that recorded in the fiscal registry, whichever is greater.

When the transferor is not a taxpayer of the tax or, being a taxpayer, his habitual business is not dealing in immovable property, in any form of transfer of ownership of immovable property taxed by this Law, the tax base is the price of the alienation which must be stated in the public deed or that recorded in the fiscal registry, whichever is greater. In all cases the Tax Identification Number -NIT- of the contracting parties must be stated and the means of payment used in the sale must be identified.

When contributions of immovable property are taxed, the tax base shall be constituted by the value of the immovable property which an authorized appraiser must estimate. An authenticated copy of said appraisal must be added, as an attachment, to the certified copy of the public deed issued for registration purposes. Public registries are obligated to require presentation of this document.

* The second paragraph corrected by numeral 24 of the Fe de Errata of June 23, 1992.

* Third paragraph corrected by numeral 25 of the Fe de Errata of June 23, 1992.

In the alienation, sale, exchange or inter vivos donation of land motor vehicles, of the model of the current year, of the year following the current year or of the year preceding the current year, if the seller, exchanger or donor is a taxpayer registered as importer, distributor, representative, franchisee or concessionaire, or if the latter is an occasional or temporary importer, the tax shall be determined by applying the rate established in article 10 of this Law and shall be paid at the time of the sale, exchange or donation, so that the importer or distributor may recover the fiscal credit for the tax paid upon nationalization.

For the case of vehicles that are not of the model of the current year, of the year following the current year or of the year preceding the current year, the tax shall be determined based on the scale of specific rates established in article 55 of the Value Added Tax Law and shall always be paid in cash by the acquirer, in the banks of the system or institutions authorized for such purpose, within the time limit of fifteen working days counted from the date on which the endorsement for the alienation, sale, exchange or donation of the vehicle is legalized in the Certificate of Vehicle Ownership issued pursuant to the Law on the Tax on Circulation of Land, Maritime and Aerial Vehicles, which shall be used as the basis to effect the change of owner in the Fiscal Register of Vehicles.

In the alienation, sale, exchange or inter vivos donation of land motor vehicles carried out after the first sale, they shall be formalized in the Certificate of Vehicle Ownership, which shall be provided by the Tax Administration or by the institution expressly defined for such purpose.

Said certificate shall contain all the information on the vehicle in transaction and on the parties entering into the same. It shall also contain the statement for the legalization of the signatures, which must be performed before a notary; this information shall support the changes in the control records kept by the Fiscal Register of Vehicles. The notary is obligated to send a notice to the Tax Administration by the means it provides, within the first fifteen days of each month, of the legalizations of signatures performed in the previous month, in accordance with this article. The regulation shall establish the requirements for this notice.

The tax shall be paid using the means made available by the Tax Administration, such means to contain the information necessary to effect the change of owner in the Fiscal Register of Vehicles.

In the cases of transfer of ownership of immovable property taxed by this Law, if the seller is a taxpayer registered for the tax and his activity is the construction or sale of immovable property, including lots with or without construction, the alienation shall be documented in a public deed for registration purposes, but the tax shall be paid on the invoice for the sale and on the date on which it is issued.

The amount of the tax and the identification of the invoice must be recorded in the final attestation of the transcript of the translative-of-ownership deed. Against the fiscal debit resulting from the tax actually charged by the taxpayers, they shall recover the fiscal credit generated in the purchase of materials, construction services and in the acquisition of immovable property, until exhausted.

When the alienor is not a taxpayer of the tax or, being a taxpayer, his usual business is not trading in immovable property, in the cases of transfer of ownership of immovable property taxed by this Law, the alienation shall be documented in a public deed and the tax shall be paid by the acquirer in cash or by any means made available by the Tax Administration, within the time limit of fifteen (15) days following the date of authorization of the deed, whether or not the transcript has been issued. The notary is obligated to record in the final attestation of the transcript of the public deed the amount of the tax encumbering the contract and shall attach the receipt or legalized photocopy of the respective payment receipt.

* Second paragraph corrected by number 26 of the Fe de Erratas of June 23, 1992.

* Third paragraph second line, by number 27 of Fe de Errata of June 23, 1992.

The Public Registers are obligated to require presentation of the document evidencing payment of the tax established in this Law, where applicable, and the General Property Register, in addition to the foregoing obligation, must require presentation of the payment receipt corresponding to the last expired quarter of the Single Tax on Immovable Property, a requirement without which the registrations, annotations or operations in them shall not be effected as long as it has not been remedied.

Individual persons, juridical persons and entities that have transferred ownership of vehicles may give notice when thirty (30) days have elapsed without the buyer having requested from the Fiscal Register of Vehicles the registration of the transfer of ownership. This notice must be submitted as a sworn statement in which he states that he has transferred ownership of the vehicle and that, consequently, he requests that the Tax Administration make the corresponding annotation in the Fiscal Register of Vehicles, with the buyer's data.

The Tax Administration shall process the seller's filing when its records show that he is the owner. The Tax Administration is empowered to require and corroborate the authenticity of the documents submitted.

Once the annotation derived from the notice of transfer of ownership of the vehicle has been made, the Tax Administration shall administratively require the purchaser to pay the tax owed, which must be paid within the time limit of five (5) days, counted from the day following the notification of the requirement, or to demonstrate that he has already paid it.

If the corresponding payment is not obtained, the corresponding decision shall be issued and the certification thereof shall constitute an enforcement title, to effect collection through the Economic Coercive procedure.

Taxpayers who are qualified by the Tax Administration as special shall submit electronically, every six months, at most, a detailed report of the purchases and sales carried out in said six-month period, in chronological order. Said report shall contain, at a minimum, the following requirements:

a)The Tax Identification Number of the buyer or seller;

b)The name of the buyer or seller;

c)The amount of the purchase or sale stated in the invoices; and,

d)Date of the purchases or sales stated in the invoices.