El Salvador VAT Calculator 2026
Last updated: January 2026
El Salvador's Value Added Tax (IVA) for 2026 has a single rate of 13%, set by the Ministry of Finance (Legislative Decree 296). El Salvador has no reduced or differentiated rate: 13% applies to most goods and services. Exempt items include: public health services, education, residential rent, public transportation, personal insurance, and financial system loan interest. IVA is calculated in US dollars (USD), as El Salvador adopted the dollar as official currency in 2001.
FAQ
What is the VAT rate in El Salvador in 2026?
El Salvador's IVA (VAT) is 13%, a single flat rate with no variations. There is no reduced or super-reduced rate. It's been the same rate for over 20 years and applies to both taxable goods and services.
What products are exempt from IVA in El Salvador?
Exempt from IVA: public health services, educational services, residential rent (non-commercial), public passenger transportation, personal insurance, and regulated financial system loan interest.
How do I extract IVA from a price in El Salvador?
To extract IVA from an IVA-inclusive price, divide the total by 1.13. Example: if a product costs $113.00, the price without IVA is $100.00 and the IVA is $13.00. To add IVA: multiply the base by 1.13.
Does El Salvador charge IVA in US dollars?
Yes. Since 2001, El Salvador uses the US dollar (USD) as its official currency alongside the Salvadoran colón (which barely circulates). All prices, including IVA, are calculated and paid in dollars.
How does El Salvador's IVA compare to other Central American countries?
El Salvador's 13% is mid-range for the region: Guatemala charges 12%, Costa Rica 13%, Honduras 15% (ISV), and Nicaragua 15%. El Salvador shares the 13% rate with Costa Rica.