Expense management module › Global expense management › Paraguay
Last updated : 11.05.2026
Expense rules in Paraguay.
Paraguay applies VAT (IVA) at 10%, one of the simplest rates in Latin America. e-Kuatia mandatory.
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1Expense rules & reclaimable VAT
IVA 10% standard, 5% on basic goods and medicines. e-Kuatia mandatory.
| Category | VAT | Reclaim | Cap / Note |
|---|---|---|---|
| Meals | 10% | Deductible | e-Kuatia + RUC |
| Lodging | 10% | Deductible | RUC |
| Alcohol | 10% | Limited | Excluded |
| Fuel | 10% | Deductible | e-Kuatia |
| Transport | 10% | Deductible | Taxi/MUV/airfare |
| Gifts | 10% | Non-deductible | Cap |
Receipt
e-Kuatia
RUC mandatory
SourcesParaguay Tax Authority
2Mileage allowance
Actual.
| Mode | Allowance | Cap | Note |
|---|---|---|---|
| Personal car | – | Fuel | e-Kuatia |
| Company car | – | Card | – |
| Taxi/MUV | – | 100% receipt | e-Kuatia |
Tracking
Logbook
Date, distance
SourcesParaguay Tax Authority
3Per diem and travel allowances
Company policy. Asuncion most expensive.
| Destination | Meal | Lodging / night | Daily rate |
|---|---|---|---|
| Asuncion | PYG 100 000 | PYG 380 000 | PYG 650 000 |
| Ciudad del Este | PYG 90 000 | PYG 320 000 | PYG 550 000 |
| Encarnacion | PYG 80 000 | PYG 280 000 | PYG 480 000 |
| Other | PYG 70 000 | PYG 240 000 | PYG 400 000 |
Conversion
~1 EUR = 8,200 PYG
Stable
SourcesParaguay Tax Authority
4Foreign VAT recovery
Residents only.
| Zone | Mechanism | Deadline | Method |
|---|---|---|---|
| Resident | IVA credit | Monthly | Return |
| Non-resident | None | – | Final cost |
| Maquila | Special regime | Per approval | Law 1064 |
Limitations
5 years
Keep
SourcesParaguay Tax Authority
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