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Gas Stations Back Off On Threat After Quick Action By Ministry of Finance

All is cool again at the country's gasoline stations. The threat of not accepting credit and debit cards starting today as announced Monday night was called off thanks to the "prompt" reaction by the Ministerio de Hacienda (Ministry of Finance). This morning, Tuesday, José Miguel...

Legislators Approve Plan Fiscal, President Signs Into Law

Legislators on Monday afternoon approved in second and final debate the Plan Fiscal - Ley de Fortalecimiento de las Finanzas Públicas - with the aim of alleviating the country's fiscal deficit. The Tax Reform bill was approved with the votes of 34 votes in favor...

#DontBeFooled: Tax reform does not include charging VAT for purchases made abroad

#DontBeFooled. False are the reports that the  Value Added Tax (VAT) - Impuesto Sobre el Valor Agregado (IVA) in Spanish - applies to purchase made outside of Costa Rica. False is also the reports that purchases made outside of the country with cards issued...

Costa Rica’s Taxman Faces A Challenge With Foreigners With Foreign Payment Options

Rico's TICO BULL - The current government, as its three predecessors, is intent on introducing sweeping tax reforms that include the introduction of a Value Added Tax (VAT) or Impuesto al Valor Agregado (IVA) in Spanish, that proposes to tax many items not taxed under...

Another Try! Government Sends Legislators New Draft Tax Reform

In an effort to keep alive the reforms to the Plan Fiscal (Tax Reforms), the government of Carlos Alvarado delivered to the legislative caucuses a new substitute text, which includes changes in the articles on the Value Added Tax (VAT), income tax and unemployment...

Costa Rica Taxpayers would pay millions in fines for ‘factura electrónica’ errors

As the obligatory 'factura electrónica' or electronic invoicing approaches for almost all taxpayers, it increases the number of software suppliers that provide this service in the country. In the market, it is estimated that about 60 companies offer the services, some at very low prices....

Are You Paying Too Much In Taxes?

“In this world nothing can be said to be certain, except death and taxes,” according to Benjamin Franklin. But it is certain that some in the world are paying more taxes than others. And to the surprise of many, Costa Ricans are near the...

Internet Purchases Would Pay Double Tax, If Propose Tax Reform Approved

Purchases made online in Costa Rica would have two types of taxes, if the current text of the Ley de Fortalecimiento de las Finanzas Públicas (tax reform bill), making its way to the legislative process is approved after reaching the full Legislative Assembly on...

Why Are Cell Phones So Expensive In Costa Rica?

The price of a smartphone in Costa Rica can be up to double, sometimes more, of its price in the United States. Why are consumers in Costa Rica hit hard for an item that is free of import duty thanks to trade agreements?   The short...

Government Proposes To Charge 4% VAT Tax On Airline Tickets, Books and Machinery

Expected today, Thursday, is the government's final draft of its tax reform that establishes two Value Added Tax (VAT) rates -  Impuesto Sobre el Valor Agregado (IVA) in Spanish - one 13% and the other 4%, with the aim of alleviating the deterioration of the...

End of Real Estate…….

The Legislative Assembly, our answer to Congress, is looking favorably and closely to charging renters a 13% tax on rental housing in Costa Rica, as part of the plan to move the country from a sales tax (currently 13%) to a value added tax...

Government Decides To Propose A 13% VAT

Being more feasible to obtain the 29 votes needed in Congress, the Government decided to propose transforming the current 13% sales tax to a Impuesto Sobre el Valor Agregado (IVA)- Value Added Tax (VAT) - instead of the 15% it had been promoting. The Vice...

Government Proposes To Charge A 15% Tax For Using Services Like Netflix

Intent on solving the country's current financial problems, the government today (Thursday) presented to legislators a new tax plan with the expectation of reducing the gap between expenditure and income from 5% to 2% of Gross Domestic Product (GDP). Among the most relevant points of...

Taxation Evaluating Asking The U.S. For Information On Airbnb Hosts in Costa Rica

Although Airbnb has offered to collect the sales tax for transactions made on rentals in Costa Rica through its platform, the Costa Rica tax man is evaluating asking the United States for information on American citizens who are hosts in the country. The Dirección General...

New VAT Expected To Be Kept At 13 Percent

Q COSTA RICA - Costa Rica may opt for a lower value-added tax (VAT) rate if and when it implements the tax reforms. The International Monetary Fund (IMF), during a recent visit to Costa Rica, noted the plans in its Article IV consultation with the...

Tourism Operators and Tax Man In Conflict Over Sales Tax On Recreation

Q COSTA RICA  - The Cámara Nacional de Turismo (Canatur)  - National Chamber of Tourism  - denounced that Ministerio de Hacienda (Ministry of Finance) intends to collect sales tax on services generated in recreation and similar tourist centers. The hoteliers and tourist entrepreneurs assert that...

People Renting Houses and Apartments For Less Than A Month Must Pay Sales And Income Tax

Q COSTA RICA - Rentals of houses, apartments and condominiums for a period of less than one month is subject to sales and income tax, indicates the Ministry of Finance (Ministerio de Hacienda) in a clarification of the new law to improve the fight...

Costa Rica Urged To Adopt VAT (Value Added Tax)

Q COSTA RICA NEWS - The International Monetary Fund (IMF) has urged Costa Rican lawmakers to agree on much-needed valued added tax (VAT) that would replace the current sales tax on purchases and income tax reforms. The report said that the country has increased its...

Costa Rica Looks to Stave Off ‘Ratings Downgrade’ With Tax Increase

(Bloomberg) Costa Rica President Luis Guillermo Solis called on lelgislators to approve tax increases by early next year, or face a possible ratings downgrade as his government struggles to contain a widening budget deficit. “I don’t see why we could not get this approved, but...

Hacienda Plans To Rebate 1% Point of Sales Tax When Using Plastic

(QCOSTARICA) The Ministry of Finance (Ministerio de Hacienda) plans to return one percentage point of sales tax to people using their plastic for purchases. The plan, if adopted, would mean consumers using plastic would effectively pay a 12% sales tax instead of 13%. The deputy minister...

Costa Rica Food Industry Opposes Tax Exemptions for Food

  Costa Rica's food industry is opposed to the executive decree which eliminates the exemption from payment of sales tax on some food products. From a statement issued by the  Cámara Costarricense de la Industria Alimentaria(CACIA) - Costa Rican Chamber of Food Industry: The CACIA sent a...

Will There Be A Light At the End of the Fiscal Reform Tunnel in Costa Rica?

QCOSTARICA - Experts warn that the draft law which aims to raise income tax and convert sales tax into Value Added Tax (VAT) might not be approved for two years, despite the government's intention to have it place before the end of this year. The...

Hacienda Extends Consultation on Tax Reform

QCOSTARICA - The Ministry of Finance (Ministerio de Hacienda) has postponed until April 17 the deadline for individuals and businesses to comment on the draft legislation reforming income and sales taxes. Originally the deadline for providing comments on the tax proposal was March 27, but...

NOT The Way To Go Costa Rica, To Tax Electricity, Water, Rents and Health

TICO BULL - One of the issues made clear by both foreign and national businesses, is that Costa Rica has to cut its electricity rates. So, while the president on the one hand gives us the impression that he agrees that electricity rates are high...

Costa Rica To Tax Soft Drinks At Distributor Level

QCOSTARICA -  Starting on March 1, the Ministry of Finance in Costa Rica (Ministerio de Hacienda) will charge sales tax on soft drinks at the distribution stage and not in the final bill to consumers. With this measure, Hacienda aims to improve the control and...

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