MINISTRY OF PUBLIC FINANCES

Remember to issue the following:

REGULATION OF THE VALUE ADDED TAX LAW.

GOVERNMENTAL AGREEMENT No. 424-2006

Guatemala, July 26, 2006.

The president of the Republic,

CONSIDERING:

That through Decree number 20-2006 of the Congress of the Republic,

reforms have been incorporated into the Value Added Tax Law, which make
it necessary to issue a new regulation that in an orderly manner facilitates
the application of the legal provisions contained in Decree Number 27. -92 of
the Congress of the Republic of Guatemala and its reforms.

THEREFORE:

In the exercise of the functions conferred on it by article 183, paragraph e),

of the Political Constitution of the Republic of Guatemala and based on the
legal provisions cited in the recital,

AGREE:

Issue the following,

REGULATION OF THE VALUE ADDED TAX LAW

TITLE I
GENERAL RULES

CHAPTER I
GENERALITIES
Article 1. The purpose of this Regulation is to regulate the application of the
provisions of the Value Added Tax Law and, in accordance with article 239
of the Political Constitution of the Republic of Guatemala, matters relating
to the administrative collection of said tax and the procedures for its
collection. And control.

When the law refers to “The Directorate”, it will be understood to refer to

the Tax Administration.

Article 2. For the purposes of this Regulation, it will be understood as:

1. The Law : The Value Added Tax Law and its reforms.

2. SAT or the Tax Administration : The Superintendence of Tax Administration.

3. Seller: Any person, individual or legal, including co-ownership, irregular

companies, de facto companies and other similar entities, even if they
do not have their own legal personality, that regularly sells goods,
whether they are their own production or acquired. from third parties.
The State and its decentralized or autonomous entities are also included
when they make sales subject to the Value Added Tax.

4. Service provider: Any person, individual or legal, including co-ownership,

irregular companies, de facto companies and other similar entities, even
if they do not have their own legal personality, that regularly provide
services.
The State and its decentralized or autonomous entities are also included
when they provide services subject to the Value Added Tax.

5. Habituality: The execution by a person of sales or provision of services,

which are of a similar nature and occur in quantities greater than one
opportunity in each monthly period or which is carried out with the same
purchaser more than once in the course of twelve months. Habituality is
presumed in all transfers or withdrawals of goods and services provided
by a person within their line of business, even if they are carried out for
themselves.

6. Total Price: The total amount of each transaction of sale of goods or

provision of services, including the Value Added Tax.

7. VAT, tax or tax: Value Added Tax.

8. NIT: Tax identification number.

TITLE II
TAX
 CHAPTER I
APPLICATION OF THE GENERATING FACT

Article 3. According to article 3, paragraph 1) of the Law, in the deliveries of

goods on consignment made by one seller to another seller, VAT is not
generated, as long as the consignee does not sell, exchange or donate the
goods received on consignment.

Article 4. In the cases referred to in article 3, paragraph 7, of the Law, the

taxpayer must document what happened, as follows:

1. If these are perishable goods, by means of a document signed by an

auditor of the Tax Administration and the Taxpayer, or failing that, by
means of a notarial act in which the fact is recorded.

Any product that has undergone a process that extends its useful life will
not be considered perishable. In the case of destruction of non-
perishable goods, the corresponding invoice must be issued, for which no
tax credit will be recognized. For this purpose, the tax base may not be
less than the acquisition price or manufacturing cost of the goods.

2. For fortuitous cases or force majeure, the event that occurred must be
recorded in a notarial document.

3. In crimes against property, the following documents must be attached:

a. Certifications of the complaint and ratification thereof, issued by the

competent authority.

b. Reliable report of insurance settlements, when the assets in question

are insured.

Article 5 . According to article 3, paragraph 10 of the Law, real estate that has
been previously contributed to companies that are dedicated to real estate
development, will be subject to the Value Added Tax, and its tax base will
be the value indicated in the appraisal issued by an appraiser. authorized.

CHAPTER II
OF THE TAX PAYMENT DATE

Article 6. In the cases referred to in article 3, paragraph 6) and as provided for

in article 4, paragraph 4, of the Law, the tax must be paid on the date of
withdrawal of the respective good or self-provision of the service, issuing
the corresponding invoice.

The tax must also be paid in the following cases:

1. In withdrawals of personal property, whether or not of the taxpayer's
business, intended for raffles or raffles, even free of charge, carried out
for promotional or advertising purposes by the sellers;

2. In the free delivery or distribution of personal property that the sellers

carry out for purposes equal to those described in the immediately
preceding paragraph, whether or not they are their business.

The tax that is produced due to the provisions of the previous paragraphs
will generate the right to the tax credit for the beneficiaries of such
personal property, in accordance with the provisions of articles 15 and 16 of
the Law. On the contrary, recognition of tax credit will not apply in cases of
self-consumption. In all cases, the corresponding invoice must be issued
and the tax base may not be less than the acquisition price or
manufacturing cost of the goods.

Article 7. The tax corresponding to interest or adjustments agreed on credit

operations, for unpaid balances, is generated as the amount of such interest
or adjustments is payable; and the tax must be paid on the date the interest
or adjustments are received, the same date on which the corresponding
invoice must be issued.

For the purposes of the provisions of the previous paragraph, it is

considered that the readjustments or interests are payable upon expiration
of the respective installment, bill of exchange or any other document that
contains them, in whole or in part.

In any sale or service in which all or part of the price is paid in installments,
it must be separately indicated how much corresponds to the price or value
of the contract and how much corresponds to agreed interest on the
balances to be collected.

When the seller does not indicate what installment or installments of the
price or value of the contract will be paid in installments, it must be stated
separately how much corresponds to the price or value of the contract and
how much corresponds to interest agreed on the balances to be collected.

When the seller does not indicate which installment or installments of the
installment price corresponds to adjustments or interest, it will be
presumed that each of the installments comprises part of the price and the
adjustments or interest will be proportional to such installment.

CHAPTER III
OF THE TAXABLE SUBJECT OF THE TAX
Article 8. For the purposes indicated in Article 5 of the Law, persons who buy
or sell goods or provide services, usually on behalf of third parties, are liable
for the tax for the amount of their commission or remuneration.

The persons on whose account the goods are bought or sold or the services
are provided are, for their part, subject to the tax, for the total that
corresponds to each operation.

CHAPTER IV
OF EXEMPTIONS

Article 9. In accordance with article 7, paragraphs 2 to 15 of the Law, the

persons and entities referred to therein are exempt from charging the tax on
sales operations or provision of services to which said paragraphs refer;
must pay the tax on the acquisition of the goods and services that they use
for the development of their activities, as established in article 9 of the Law,
that only the persons and entities referred to in the law are exempt from
paying the tax. Article 8 of the Law.

Article 10. For the purposes of paragraph 5, article 7, of the Law, the tax paid
by cooperatives in the purchase of goods or acquisition of services that are
intended exclusively for operations with their members, cooperatives,
federations, service centers and confederations of cooperatives, will be part
of the cost of acquiring them, as it is an exempt activity.

In operations with third parties, cooperatives must charge the tax on the
sales or provision of services they carry out with them. Consequently, in
accordance with article 16 of the Law, the tax they pay to their suppliers
must be distributed proportionally between the total sales and provision of
taxed services (with third parties) and exempt (with associates or others).
In the monthly declaration they must record, as a tax credit, only the
proportion that corresponds to the sales or provision of taxed services.

Article 11. In accordance with article 7, paragraph 12; and article 16 of the
Law, the tax paid on the acquisition of goods and services that are used in
the construction of homes or in the development of lots, the sale of which is
exempt from the tax, will form part of the cost of their acquisition.

For the purposes of applying the exemption in the purchase of a home or

urbanized lot, the family nucleus will be understood as the group formed by
the father, mother and minor children, except for special circumstances that
must be documented.

Article 12. The persons referred to in article 8, paragraph 1, of the Law, who
also carry out activities subject to VAT, must register as taxpayers for these
activities and submit the declaration for sales or provision of taxed
services, referred to in the article. 40 of the Law, not including the exempt
operations of the educational center.

Article 13. The persons, entities, organizations, diplomatic and consular

missions referred to in article 8 of the Law must request from the Tax
Administration their registration as exempt from the tax, proving their
status as such. Once registered, they may use the exemption certificates
regulated in article 9 of the Law.

Article 14. The Tax Administration will create a document that identifies the
exempt person, which will be provided to the people established in article 8
of the Law, the purpose of this document is that they can identify
themselves to third parties as holders of the right of exemption, with the
purpose to improve and control the use of exemption certificates.

For the purposes of what is regulated in the previous paragraph, the Tax
Administration will establish the characteristics of the identification, as
well as the procedures, means and form for its preparation, delivery, use
and expiration of the same.

Article 15. The Tax Administration will establish the form, the procedures for
the preparation or issuance, registration, control and delivery of the
exemption certificates established in article 9 of the Law, which may be
prepared and issued on paper or by different means.

Exemption certificates must contain, at a minimum, the following:

a) Name of “VAT Exemption Certificate”;

b) Transaction date;

c) Number of the issued exemption certificate;

d) Number of the invoice or the operation carried out, if electronic;

e) Tax Identification Number of the buyer and seller;

f) Full name, reason or company name of the seller or service provider;

g) Total price of the good or service. Said price must include the tax
that is the subject of the exemption;

h) The amount of the tax subject to exemption;

i) Signature of the exempt person. In the case of legal entities, the

signature of the legal representative or representatives accredited
before the Superintendency of Tax Administration and, in the case of
 diplomatic or consular missions and international organizations, the
signatures of the owners or of the persons accredited before the Tax
Administration for the effect.

Individuals or legal entities that have registered educational centers and

establishments with taxable activities with the Tax Administration must
include within the exemption certificates the name of the educational
center for which the use of said certificates was authorized.

The certificate of exemption must be issued in original and duplicate, with

the first in the possession of the seller and the second in the possession of
the exempt person for registration, and must be kept for a period of four
years.

Invoices issued for sales or provision of services to exempt persons

established in Article 8 of the Law must be issued in the name of the
beneficiary of the exemption, stating their respective tax identification
number. In no case may such invoices be be issued in favor of third parties.

Taxpayers who sell or provide services to persons, entities, organizations,

diplomatic and consular missions established in article 8 of the Law, will
include in the monthly declaration, the amount of these operations in the
lines "Total Taxed Sales or Total Services Provided" , as appropriate. In the
line "VAT according to exemption certificates or operations carried out",
they must report the amount of the tax, attaching a report of the certificates
received or a list of the operations carried out in the case of being
electronic, which will include at least: date of the issuance of the
certificate, certificate number, invoice number that covers the sale or
provision of the service, amount of the purchase or service, amount of the
tax subject to the exemption. The documents that support these sales or
services must be kept safe by the seller or service provider for a period of
four years.

The entities referred to in article 8, paragraphs 2, 3, 4, 5 and 6, of the Law,

may request the Tax Administration for authorization to print their own
exemption certificates, in continuous pre-printed forms, to be used in
computerized systems. The Tax Administration will decide on the
requirements and characteristics that the exemption certificates must
contain and that the printing is the responsibility of the exempt person. With
respect to imports of merchandise carried out by the persons referred to in
article 8 of the Law, the Tax Administration will in no case accept the tax
exemption certificates established in article 9 of the Law, considering that
said exemption must appear in the resolution of the respective franchise. In
cases where the exemption is not stated in the resolution issued by the Tax
Administration, VAT will be collected.
When the Tax Administration establishes that the tax exemption is being
used improperly, it will file a complaint, in accordance with the provisions of
the Tax Code and current criminal legislation.

Article 16. For the purposes of registering and controlling the exemption
certificates, the exempt persons established in article 8 of the Law must
submit a report to the Tax Administration, by electronic means or other
means established by the aforementioned institution, which must contain all
exempt operations and transactions for which exemption certificates have
been issued by computerized, electronic or paper means, detailing the
following:

a) Number of the exemption certificate issued and date on which it was

used;

b) Tax Identification Number and full name, reason or company name of

the supplier;

c) The total amount of the transaction;

d) In the event that the total amount of the invoice is greater than ten
thousand quetzales (Q. 10,000.00), must also detail the invoice number and
the description of the goods and services purchased.

The report of exemption certificates indicated in the preceding paragraph

will be quarterly, so within the first fifteen days of the month immediately
following the end of the reported quarter, it must be presented to the Tax
Administration.

CHAPTER V
OF THE TAX BASE

Article 17. For the purposes of the provisions of article 11, paragraph 1 and
article 12, paragraph 1, of the Law, the following items that have accrued in
the tax period are part of the tax base:

1. Readjustments of any type, agreed upon, either before, at the time of the
taxable transaction or after it.

2. The financial surcharges and financing expenses of the operation, such

as commissions and interests paid to third parties, notary expenses and
registration of pledge contracts in the respective registries.

3. Interest, including late payment, that accrues due to late payment of all
or part of the price.
For the purposes of the provisions of article 12, paragraph 3, of the Law, any
other sum charged by taxpayers to their purchasers that appears on the
invoices. An exception is made to the municipal tax for public lighting
service that is charged on electricity service bills, on behalf of the
municipalities, because the tax must be charged only on the bill that the
service provider issues to the corresponding municipality.

CHAPTER VI
OF THE FISCAL DEBIT

Article 18. The monthly tax debit is determined as follows:

1. The total of taxed sales or services is divided by one point twelve (1.12)
to determine the tax base. This base is multiplied by zero point twelve
(0.12), thus obtaining the tax.

2. Small taxpayers will determine their tax debt according to the procedure
contained in the previous paragraph, except when they opt for the
quarterly fixed fee regime referred to in article 50 of the Law.

3. The fiscal debit for the period will be increased with the tax included in
the price established by the seller or service provider in the debit notes
referred to in article 29, subsection b) of the Law, issued within the same
period. tax.

Article 19. From the determined monthly tax debit, the tax corresponding to
the credit notes issued by:

1. The sums returned to the purchasers for goods returned by them; as well
as the values of canceled invoices corresponding to operations already
declared.

2. Bonuses and discounts granted to buyers or beneficiaries of services

after billing.

3. The amounts returned to buyers for the deposits made by them to

guarantee the return of the containers.

To make these deductions from the tax debit, it is an essential requirement

that the taxpayer issue the credit notes referred to in article 29, subsection
c) of the Law and that he register them in his accounting within the period
established in the third paragraph of the article 17 of the Law.

Article 20. Taxpayers who have improperly invoiced a tax debit greater than
the corresponding amount may correct this situation by issuing the
corresponding credit note, thus recording it in their accounting, within the
period established in the third paragraph of article 17 of the Law.
 CHAPTER VII
OF TAX CREDIT

Article 21. For the purposes of article 16 of the Law, taxable acts or affected
operations will be understood as those included as a generating event in
article 3 of the Law.

Article 22. In accordance with the provisions of article 16 of the Law, the
Value Added Tax will not generate a tax credit, for the following:

1. Expenses for acquiring goods or services intended for the private use or
consumption of the owner, partners, directors, administrators, employees
or third parties.

2. Expenses for acquiring goods or services when they are not necessary in
the production process, marketing of the goods or the provision of
services to the taxpayer.

3. Expenses for the purchase or lease, maintenance, repair, fuel, lubricants,

insurance or others of new or used vehicles, which by their nature are
not necessary for the marketing of the taxpayer's goods or the provision
of services.

When the taxpayer records these expenses as costs, they will also be
considered inadmissible for the recognition of tax credit.

Article 23. In accordance with article 16 of the Law, taxpayers must show,
separately, the following in the declaration:

a) In the case of exports and sales or provision of services to exempt

persons, the tax credit generated by the import or acquisition of goods,
or services necessary for the same.

b) In the case of sales of goods or provision of services in the national

territory, the debits generated in said activity, when applicable, and the
credits generated by the import, acquisition of goods or services,
necessary for them.

When the taxpayer cannot identify which of the aforementioned activities

the tax credit contained in a document corresponds to, he or she must make
a proportional distribution of it.

CHAPTER VIII
OF THE DETERMINATION OF TAX OBLIGATION

Article 24. The requests for refund of tax credit referred to in articles 23 and
23 "A" of the Law will be submitted in the application form authorized by the
Tax Administration, and the taxpayer must provide at least the information
requested therein.
In accordance with the provisions of literals a and c of the third paragraph
of article 23 “A” of the law, the taxpayer must accompany the refund
request, original and photocopy of the ten highest value invoices of each
monthly period that make up the amount for which you request a refund of
tax credit.

Likewise, and when the Tax Administration requires it, you must present the
following:

a) Integration of the exemption certificates received, during the period

for which you request a refund.

b) Neighborhood Identification Card of the taxpayer or legal

representative. If you are a foreigner, you must present your passport.

c) In the case of being a legal entity, appointment of the legal

representative.

d) Company trade patent and company trade patent, when applicable.

Without prejudice to the power of the Tax Administration to request

additional documentation that it considers necessary and to verify its
veracity and authenticity.

Article 25 . In accordance with the provisions of paragraph 1 of article 23 of

the Law, the Tax Administration will inform the taxpayer, in accordance
with the procedures established in the Tax Code, that the invoices that
support their tax credit were authorized with documentation. or false
information and prevents it so that future requests do not include invoices
with these irregularities, otherwise it will proceed to deny the requested tax
credit supported by said documents, without prejudice to filing the
corresponding complaint in accordance with the Tax Code and criminal
legislation. current.

CHAPTER IX
FROM EXPORTERS

Article 26. For the purposes of incorporation into the Special Tax Credit
Refund Regime, exporters must submit an application using the
corresponding registration form that the Tax Administration provides. In
said form, to verify the percentage of their total annual sales attributable to
exports, in accordance with the provisions of paragraphs A) and B) of article
25 of the Law, they must enter, per month, the information corresponding to
local sales and export and the total of both, which they declared in the last
period of final annual settlement of the Income Tax.
To the forms indicated above, you must attach the following:

a) Authenticated photocopy of the residence card of the taxpayer or

legal representative. If you are a foreigner, you must present an
authenticated photocopy of your passport.

b) In the case of a legal entity, authenticated photocopy of the

appointment of the legal representative.

c) Authenticated photocopy of the company's business license and

company's business license, when applicable.

d) Proof of Registration as an exporter before the Bank of Guatemala.

e) Financial statements of the last period of final annual settlement of

the Income Tax, certified by the Accountant that the taxpayer has
registered with the Tax Administration as such. Said financial
statements must contain the information recorded in the form
indicated in the first paragraph of this article.
f) In the event that the taxpayer is qualified according to the Regimes
contemplated in Decree 29-89 of the Congress of the Republic, Law of
Promotion and Development of Export and Maquila Activity, he must
present the resolution issued by the Ministry of Economy.

Article 27. The Superintendency of Tax Administration will keep a record of

the Public Accountants and Auditors who request their registration and
authorization to issue opinions on the origin of the refund of tax credit to
exporters registered in the Optional Regime for refund of tax credit, as well
as the changes in your registration details.

The Public Accounting and Auditing professionals indicated in Article 24 “B”

of the Law must submit the application for registration and authorization for
one or both conditions indicated in said sections and comply, in addition to
what is indicated in the Law, with the next:

a) Present an authenticated photocopy of the neighborhood card.

b) Be updated in the Unified Tax Registry.
c) Be up to date in compliance with your tax obligations.

When the Tax Administration establishes that the Public Accountant and
Auditor has not complied with his tax obligations, it will proceed to
inactivate him from the registry of Public Accountants and Auditors of the
SAT.
The sworn statement indicated in literal b) of numeral 1 of article 24 “B” of
the Law must have been signed before a Notary.

Article 28. In accordance with the provisions of article 25, paragraph 2, of the
Law, taxpayers, in order to keep their registry updated, must present to the
Tax Administration the sworn declaration updating said registry.

In this declaration they will record the information on the sales declared
during the previous semester for which they received tax credit refunds
from the Bank of Guatemala, specifying: Local sales, export sales and the
total of both sales; and the amount of refunds received that they declared as
a tax debit in the period in which they received said refund.

When, due to the nature of their export activity, they did not carry out
exports in the immediately preceding semester, they will specify this in
their request, as a justification for not accompanying the detail referred to
in literal a) of the Law.

The sworn statement must be accompanied by a photocopy, certified by

your Accountant, of the ledger pages in which the export sales made in the
semesters expired in June and December of each year are recorded.

The payroll of those who maintain their status as registered within the
special refund regime will be transferred by the SAT to the Bank of
Guatemala within the first five (5) business days of the months of February
and August of each year. The omission of a taxpayer from said list will have
the effect of temporarily excluding them from the regime.

Failure to submit the update declaration or its submission outside the

months of January and July of each year will cause the exporter to be
temporarily excluded from the special regime. In the case of the
declarations with respect to which part of the corresponding requirements
have been omitted, the reinstatement of the taxpayer and consequently his
right to request a refund of tax credit within it, will be reinstated from the
date on which the resolution is notified. that is issued after compliance with
said requirements. The right to request a refund thus enabled will be
exercised in compliance with the period referred to in article 25, paragraph
1, of the Law. In these cases, the SAT will transfer the corresponding list to
the Bank of Guatemala, no later than within the first five (5) business days
of each month.

Article 29. For not covering the cost of administration and control, both the
Tax Administration and the Bank of Guatemala will refrain from processing
requests for tax credit refunds that are originally for amounts less than two
thousand quetzales (Q.2,000.00), so the Taxpayers must accumulate the tax
credits for subsequent months, until their request is for at least that
amount.
Notwithstanding what is stated in the previous paragraph, the refund of tax
credit by the Bank of Guatemala will proceed for amounts less than two
thousand quetzales (Q.2,000.00), when the original application has been
submitted for values greater than said amount and, therefore verification
reasons, adjustments to the tax credit have been determined that reduce
the requested amount.

TITLE III
FROM THE TAX ADMINISTRATION

CHAPTER I
OF TAXPAYER CONTROL

Article 30. In accordance with article 26 of the Law, individual or legal

persons, in order to carry out operations subject to the tax, are required to
previously register in the Unified Tax Registry of the Tax Administration
using the respective form. Next, they must register as tax payers and
register all businesses, establishments or offices with their respective
addresses.

According to article 36 of the Law, registered taxpayers must have the

documents previously authorized by the Tax Administration to support their
sales operations and provision of services for each of the businesses,
establishments or offices.

CHAPTER II
OF DOCUMENTS FOR SALES OR SERVICES

Article 31. The documents referred to in articles 29, 30 and 52 of the Law must
be issued, at least, in original and one copy. The original will be delivered to
the acquirer and the copy will remain in the possession of the issuer; except
in the case of the special invoice, in which the issuer will keep the original
and deliver the copy to the person who sold the good or provided the
service.

Taxpayers may request authorization from the Tax Administration, so that

the copy of the same is kept in electronic form, in means that guarantee the
security of the information for the limitation period established by the Tax
Code. Information security is understood to be when it remains complete,
reliable and available during the established period.

In all cases, the documents will contain:

1. The authorized numerical range,
2. The number and date of issuance of the resolution,
3. The name, name or company name and the NIT of the printing
company in charge of printing the documents, which is duly
 registered and active in the Tax Registry of Printing Presses of the
Tax Administration.

Exceptions are invoices issued by machines or cash registers and

authorized integrated accounting systems, which will have the
characteristics that this regulation develops.

Article 32. In accordance with the provisions of article 29 of the Law, invoices,
debit notes and credit notes must contain at least the following
requirements:

1. Identification of the document in question: Invoice, debit note or credit

note.

2. Correlative numbering of each type of document in question.

3. Series of the document, which will be different for each commercial

establishment of the taxpayer.

4. Full names and surnames and commercial name of the issuing taxpayer,
if it is an individual; reason or company name and commercial name, if it
is a legal entity.

5. Tax Identification Number of the issuer.

6. Address of the establishment or office where the document is issued.

7. Date of issue of the document.

8. Full names and surnames of the acquirer, if it is an individual; reason or

company name, if it is a legal entity.

9. NIT of the acquirer. If the latter does not have it or does not provide it,
the words final consumer or the acronym C will be recorded. F.

10. Details of the sale, the service provided or the leases; and their
respective values.

11. Discounts granted.

12. Charges applied due to the transaction.

13. Total price of the operation, including tax.

The data referred to in numbers 1 to 6 must always be printed in the

documents prepared by the printing company.
Article 33. The special invoices referred to in article 52 of the Law must
contain at least the following requirements:

1. The name special invoice.

2. Correlative numbering of each type of document in question.

3. Series of the document, which will be different for each commercial

establishment of the taxpayer.

4. Full name and commercial name of the issuing taxpayer, if it is an

individual; company name and commercial name if it is a legal entity.

5. Tax Identification Number of the issuer.

6. Address of the establishment or office where the document is issued.

7. Date of issue of the document.

8. Full name of the seller or service provider, individual person, to whom

the special invoice is issued.

9. NIT of the seller or service provider. If the person does not have a NIT,
the neighborhood ID number will be recorded.

10. Address of the seller or service provider, to whom the special invoice is
issued.

11. Detail of the sale, provision of service or leases and their respective
values.

12. Discounts granted.

13. Charges applied due to the transaction.

14. Total price of the operation, including tax.

The data referred to in numbers 1 to 6 must always be printed on the special

invoice prepared by the printing company.

Article 34 . In accordance with the provisions of articles 29, 34 and 36 of the

Law, taxable subjects of the tax who are dedicated to the land
transportation of people, public shows, mechanical and electronic games,
tolls, cinemas, theaters, entry to fairs and centers recreational, the Tax
Administration may authorize, upon request of the taxpayer, the use of pre-
printed invoices. The Tax Administration may authorize the printing of this
type of invoices to document the payment of services other than those
mentioned. These invoices must be issued at least in original and copy or in
a check book with elbow, and comply with the following requirements:

1. The invoice name.

2. Correlative numbering. In those numbers that have a serial

identification, this must be different in each commercial establishment
owned by the same taxpayer.

3. Full name and commercial name of the issuing taxpayer, if it is an

individual; reason or company name and commercial name, if it is a
legal entity.

4. Tax Identification Number of the issuer.

5. Service description.

6. Blank spaces for the purchaser to enter his/her Tax Identification

Number and full name.

7. Date of service provision.

8. Total price of the service.

The data referred to in paragraphs 1 to 5 must always be printed in the

documents prepared by the printing company.

Article 35. In accordance with article 29 of the Law, invoices issued by

authorized mechanical or computerized machines or cash registers must
contain, at a minimum and in clearly legible form, the following information:

1. The name Invoice.

2. Full names and surnames and commercial name of the issuing taxpayer,
if it is an individual; reason or company name and commercial name, if it
is a legal entity.

3. Address of the establishment or office where the document is issued.

4. Tax Identification Number of the issuing taxpayer.

5. Resolution number by which the Tax Administration authorized the

issuance of invoices and authorized range.
6. Invoice number, whose consecutive sequence must not be interrupted
for any reason, except when the cash register or cash register machine
reaches its maximum numerical capacity, from which point you must
request new authorization to issue invoices.

7. Series of the document, which cannot be repeated in any of the

commercial or similar establishments of the same taxpayer.

8. Name and surname of the acquirer, if it is an individual person; name or

company name, if it is a legal entity, or failing that the following
indication: Name ___________., having to consider a blank space to enter
the name, name or company name, as the case may be, of the acquirer.

9. Tax Identification Number of the acquirer. If the latter does not have it
or does not inform the issuer, the words final consumer or the initials CF
will be entered. In these cases, both the name of the acquiring person
and the NIT registration must be written manually in the original
document, under the responsibility of the issuer.

10. Detail of the sale or service provided and their respective values.

11. The total price of the transaction including tax, as well as the indication
of discounts applied.

12. Date of issue.

Each operation will be printed on internal audit tapes of the authorized cash
register or machine, constituting a duplicate of the issued document; tapes
that the issuing taxpayer must keep for the limitation period established by
the Tax Code, except when any act has occurred that interrupts the
prescription of the tax obligation, in which case the period will be computed
again, so that the Tax Administration can exercise its supervisory action.
When the Tax Administration has authorized keeping duplicate invoices in
electronic files, the taxpayer must keep them for the period indicated in the
previous paragraph.

In the case of individuals or legal entities that make payments on behalf of

others, receive contributions or donations for the benefit of non-profit
entities duly registered as such with the SAT, and that have authorization
from the SAT to use computerized cash register machines or computerized
systems. integrated accounting systems to issue invoices, may include
these amounts immediately after recording the legend “END” on the invoice.
OF THE INVOICE". The amounts received for the indicated concepts must be
recorded in the accounting in a specific account that allows verification.
Article 36. For the purposes of article 31 of the Law, the Tax Administration
will only authorize mechanical, computerized cash register machines or
cash registers that have internal security devices that guarantee that the
partial or total elimination or alteration of the operations carried out cannot
be introduced.

The Tax Administration may authorize the use of machines or cash registers
that will be used by the issuing taxpayer in temporary or mobile locations
such as fairs, public events of any kind or in means of transportation, for
which the interested party must expressly indicate in their respective
request. of authorization, the particularities of the taxed operations that will
be carried out.

Every machine or cash register whose use is authorized by the Tax

Administration must have attached or engraved, in a visible part, a badge
issued by the Tax Administration indicating that it is authorized to issue
invoices or other documents, the name of the issuing taxpayer, its tax
identification number, its tax address, the resolution number through which
the use is authorized, the commercial address at which the machine or cash
register will be used, or the indication that its location may be mobile, the
brand, model, factory number and other data that individualizes and
identifies the machine or cash register. If for any reason the aforementioned
badge comes off or deteriorates, the issuing taxpayer must request its free
replacement.

The Tax Administration, based on the volume of issuance of sales invoices

and the number of commercial establishments of the taxpayer, may
authorize the use of integrated computerized accounting systems to issue
invoices, debit notes and credit notes that comply with the legal
requirements, as long as the system records sales operations daily and
comprehensively, on equipment installed within the national territory, and
does not allow the elimination or partial alteration of invoiced operations, or
duplication in the numbering of invoices used. These operations must be
duly recorded to facilitate their verification by the Tax Administration. For
the authorization or denial of the use of the system, a resolution will be
issued by the Tax Administration, based on the opinions that it deems
appropriate to request.

The taxpayer, based on the resolution that authorizes the use of the
integrated computerized accounting system to issue invoices, debit notes
and credit notes, must request authorization to issue the aforementioned
documents for each business, commercial establishment or in mobile form.

The Tax Administration may previously authorize the Software and the
equipment distributed by their suppliers. The supplier must inform the Tax
Administration about the sale of said systems in the forms authorized by it.
In such case, the acquirers will only require authorization for the issuance
of the respective documents.

When the Tax Administration finds indications in the integrated

computerized accounting system to issue invoices, debit notes and credit
notes whose use it authorized, the information on sales made or services
provided or other important aspects was altered, it will proceed to cancel
the authorization of the system. and to file the corresponding criminal
complaint, as provided in articles 70 and 90 of the Tax Code.

CHAPTER III
OF BOOKS AND RECORDS

Article 37. The manual or computerized books referred to in article 37 of the

Law must be authorized by the Tax Administration, upon request submitted
in a form that it provides for this purpose.

Article 38. In the book of purchases and services received, purchases or

imports of goods and acquisition of services that are linked to local sales
operations, export operations and exempt persons must be recorded, in
chronological order and separately, as established in articles 25. and 26 of
this regulation and with the following minimum data:

1. Series, number and date of invoices, debit or credit notes, customs

import declaration, public deeds or special invoices, which support the
acquisition of goods and services.

2. NIT and full name of the seller or service provider, in the case of special
invoices.
3. If the seller does not have a NIT, the neighborhood ID number will be
entered.

4. Net price (not including tax), according to the separation made of the
purchases and imports of goods and the acquisition of services
according to each of the sales activities carried out.

5. VAT (tax credit) in accordance with the separation made of the

purchases and imports of goods and the acquisition of services
according to each of the sales activities carried out.

At the end of each monthly period, they must make a summary in the book
of purchases and services received, separating the purchases and imports
of goods and acquisition of services that correspond to local sales
operations, export operations and exempt persons.

Article 39. In the sales and services provided book, the following data must be
recorded, in chronological order and at least:
1. Series, number and date of the invoice, debit note, credit note,
supporting the sales made and the services provided.

2. NIT and full name of the buyer.

3. Total value of exports and exempt sales.

4. Net price (not including tax) of sales of goods and services provided.

5. VAT (fiscal debit), corresponding to sales and provision of services.

If the taxpayer consolidates his daily sales, he must use a line for each type
of document, indicating the first number and series, if any, and the last of
the type of issued document in question, in which case it is not necessary to
complete the numeral. 2 above.

Article 40. The information recorded in the books of purchases and services
received and sales and services provided will be the basis for preparing the
corresponding declaration.

Taxpayers who have authorized books of purchases and services received

and sales and services provided, for each business or establishment, may
continue with the same mechanism. Those who wish to centralize their
purchasing and sales operations may do so as long as the operations of
each business or establishment are recorded in the aforementioned books in
chronological order.

CHAPTER IV
OF THE DECLARATION AND PAYMENT OF THE TAX

Article 41. In accordance with articles 40 and 41 of the Law, it will be paid in
cash, by debit or check from the taxpayer's bank account or other means
that, in accordance with its powers, the Tax Administration authorizes,
within the calendar month following each payment period. imposition, using
the form provided.

In said monthly declaration form, the amounts reported must be integers,

without hundredths of a quetzal.

Article 42. In accordance with article 45 of the Law, the tax determined by
small taxpayers in each monthly period will be paid per calendar quarter in
arrears and within the first ten (10) business days of the months of January,
April, July and October of each year, in the form provided by the Tax
Administration.
Payment can be made in cash, by debit or check from the taxpayer's bank
account.

Article 43. In accordance with article 56 of the law, the Notary will record in
the public deed that contains the sale of real estate the Tax Identification
Number of the contracting parties, and will identify the means of payment
that was used in the contract referred to in the law. writing. For the
provisions of article 57 of the law, the purchaser of the property must pay
the Value Added Tax, in the form provided by the Tax Administration.

CHAPTER V
OF THE CESSATION OF ACTIVITIES

Article 44. For the purposes of article 43 of the Law, taxpayers who are
required to keep accounting in accordance with the Commercial Code, must
present to the Tax Administration a closing balance, whether definitive or
temporary suspension, as the case may be, of the activities of the business
or establishment in question.

If you have mechanical or computerized machines or cash registers,

authorized by the Tax Administration, the taxpayer must request the
cancellation of the resolution that authorized their use, and must attach the
original sticker.

Likewise, the taxpayer must present to the Tax Administration all invoices,
special invoices, debit notes, credit notes and exemption certificates, when
applicable, that have not been used and that are authorized by it,
proceeding to destroy the documents at the time of presentation, duly
cancelled.
Once destroyed, the taxpayer will record the fact under signature on the
form that will be delivered to him by the Tax Administration, which will
include the documents, their numbering and series, as well as the amount
that was destroyed, being his responsibility to use some document
indicated to have been destroyed.

CHAPTER VI
OF THE SIMPLIFIED TAXATION REGIME
FOR SMALL TAXPAYERS

Article 45. In accordance with articles 47 to 51 of the Law, small taxpayers

who opt for the simplified tax regime must comply with the following:

1. Issue invoices for sales or services whose amount is greater than

twenty-five quetzales (Q.25.00).

2. For the proper control of sales or the provision of services with values of
twenty-five quetzales (Q.25.00) or less, for which no invoice has been
issued, an invoice will be issued daily consolidating the total amount of
 such sales, of which they must keep in your possession both the original
and its copies. Such sales or services will be subject to the Value Added
Tax, so they will form part, in any case, of your tax liability, except in
the case of the taxpayers referred to in article 50 of the Law, for whom
the amount of The invoices constitute the basis for the payment of the
tax. When an invoice is issued for the day's transactions, the name will
be entered as “Various Clients”, and as the NIT: the initials C. F.".

3. Keep a book to record your purchases and sales daily. This book must
be previously authorized by the Tax Administration and contain at least:

a) Left side: PURCHASES, noting in chronological order:

i. Number and date of the invoice, debit or credit note received,

import policy, deed or special invoice, supporting the purchases
made and the services received.

ii. The NIT and the name of the seller or service provider. In the case
of special invoices, if the seller does not have a NIT, the
neighborhood ID number will be entered.

iii. Total price of the operation.

iv. IVA tax credit).

b) Right side: SALES, noting in chronological order:

i. Number and date of the invoice, debit note or credit note issued.

ii. NIT and name of the buyer.

iii. Total price of exempt operations.

iv. Total price of taxed operations.

v. VAT. (fiscal debit).

If the taxpayer consolidates his daily sales, he must use a line for each type
of document, recording the first authorized number and series, if available,
and the last number and series of the type of document in question. In these
cases it is not necessary to complete section b), ii), above.

TITLE IV
OF THE TRANSITIONAL, REPEALING AND VALIDITY PROVISIONS

ARTICLE 46. Transient. In the case of taxpayers who are dedicated to the
export referred to in Article 16 of the Law, the compensation of VAT
withholdings made with their tax credit subject to refund will proceed,
starting from the VAT tax period in which the validity of Decree 20-2006 of
the Congress of the Republic.

ARTICLE 47. Government Agreement No. is repealed. 311-97 and its reforms.

ARTICLE 48. This Agreement will come into force on August 1, two thousand
six and must be published in the Diario de Centro América.

COMMUNICATE,

OSCAR BERGER

Lic. Mefi Rodríguez García

VICE MINISTER OF PUBLIC FINANCE
Office Manager

Lic. Jorge Raúl Arroyave Reyes

GENERAL SECRETARY
OF THE PRESIDENCY OF THE REPUBLIC

(E-678-2006)-July 31