Main factors of tax noncompliance with the Value Added Tax in Guatemala

Abstract

The main source of income of the State of Guatemala is represented by tax revenues, these have allowed to finance public expenses and therefore satisfy the collective needs of citizens. In this sense, it is the Value Added Tax -VAT- that represents the greatest collection weight in tax revenues, however, it is the tax that has shown the highest non-compliance rate. Consequently, the main factors that influence non-compliance with the Value Added Tax -VAT- were identified, such as: low tax culture, informal economy, lack of perception of control and inspection risk in the taxpayer. The research was supported by the descriptive scientific method, which allowed to analyze from the general to the specific and to use primary and secondary sources, which helped to verify the hypothesis and conclude that non-compliance with VAT, transcends registered and unregistered taxpayers of the tax base, that the tax culture programs carried out have not reflected a change in attitude to voluntary tax compliance of the citizen, that the impact on the informal economy, in addition to incurring collection, has repercussions in unfair competition, among others. This panorama allows us to have a closer look at the main edges of non-compliance and thus propose possible solutions to counteract non-compliance with VAT in Guatemala.