Costa Rica changes to VAT

Sun 30th Aug 2015

Costa Rica has proposed a range of changes to the exiting Value Added Tax regime, which is in fact closer to a simple sales tax system. The changes include:

  • More services to be subject to the consumption tax
  • Introduction of self-billing and consumption
  • VAT refunds for people below the official poverty line
  • Introduction of reduced VAT rates at 5% for a limited range of basic goods, raw materials and agricultural supplies
  • Refunds of VAT on certain credit card payments to discourage VAT fraud
  • An graduated 1% VAT rise each year from today’s 13% until 15% in 2017