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Honduras Tax Information

15% ISV

ISV (Sales Tax) is 15% (18% for alcohol/tobacco). RTN required for all businesses.

Contractor Services to Invoice

  • Labor charges
  • Material costs
  • Equipment rental
  • Permit fees
  • Subcontractor work
  • Change orders
  • Warranty work

Invoice Requirements in Honduras

RTN number
SAR registration
Client RTN
Invoice number
ISV (15%)
Total in HNL

Payment Terms

Progress billing at milestones. Retain 5-10% until final inspection.

Contado15 días30 díasCrédito

Payment Methods in Honduras

Bank TransferBAC HondurasBanco AtlántidaCredit CardCash

Contractor Invoice Tips

  • Break down materials and labor
  • Reference permits
  • Document change orders
  • Include lien waiver language
  • Track progress payments

Frequently Asked Questions

What tax rate applies to contractor invoices in Honduras?

Honduras has 15% ISV. ISV (Sales Tax) is 15% (18% for alcohol/tobacco). RTN required for all businesses.

What payment methods are common for contractors in Honduras?

Common payment methods in Honduras include: Bank Transfer, BAC Honduras, Banco Atlántida, Credit Card, Cash. Progress billing at milestones. Retain 5-10% until final inspection.

What should contractor invoices include in Honduras?

Your invoice should include: RTN number, SAR registration, Client RTN, Invoice number. For contractor services specifically, also include: Labor charges, Material costs, Equipment rental.

How should contractors bill for projects?

Progress invoicing at milestones. Break down labor, materials, and subcontractor costs.

How do contractors handle material markup?

15-25% markup is standard. State policy in contracts.

What is Honduras' ISV rate?

Honduras applies 15% ISV on most goods and services. 18% for alcohol, tobacco, and luxury items. Exports zero-rated.