Costa Rica

Costa Rica 13% VAT implementation

June 7th, 2018

Costa Rica has published a plan to introduce a 13% VAT regime to replace its existing Sales Tax. The current 13% sales tax is levied on imports and domestic sales of all goods. There are exemptions for basic foodstuffs, medicines and other essentials. Services are exempt. The country needs to widen its tax based, which means …


Costa Rica

Costa Rica VAT rise to 15%

August 20th, 2017

The government of Costa Rica has put forward a proposal for an increase in VAT from 13% to 15%. The tax rise is part of a package of changes presented to parliament last week.  It included expansion of the corporate income tax net to global income.


Costa Rica

Costa Rica e-invoice database

September 21st, 2016

Costa Rica is formalising plans to create a centralised, compulsory database of all invoices, credit notes and supporting documentation created by taxable persons. The new e-invoice database will mirror systems in China and Brazil, and should help reduce fraud. The tax office has now provided details of the format requirements for providing invoice details. The …


Costa Rica

Costa Rica changes to VAT

August 30th, 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 …


Costa Rica

Costa Rica rating downgrade spurs VAT reform

September 27th, 2014

Costa Rica is to join the growing number of countries seeking to stablise their government deficits through the introduction of a modern Value Added Tax regime. The movement to overhaul the current 13% simple sales tax has come following a downgrade of the economies credit rating by Moodys. It slipped from BB1 to BAA3. Moody’s …


Costa Rica

Costa Rica to push for VAT implementation

June 18th, 2014

The new Costa Rica government has indicated that it will accelerate the replacement of the existing Sales Tax with a full Value Added Tax regime. The principle driver for the changeover would be the high rate of fraud in the economy. VAT regimes generally include a staged payment system through the production supply chain. These …