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VAT Will Affects Construction Costs, Says CCC

COSTA RICA NEWS — Employers say the value added tax of 13% on services will raise end prices of buildings by between 4% and 8%, and propose a differential rate for the sector.

The Cámara Costarricense de la Construcción  (CCC) – Costa Rican Chamber of Construction – states that the construction of a dwelling requires other services such as electricians, plumbers, metalworkers, architects, engineers, and others, which will eventually transfer this 13%, impacting the final cost.

Román Salazar, vice president of the CCC told Crhoy.com that “… it means according to their projections that the value added tax (VAT) of 13% will make the sector shrink to a point where tax revenues, rather than increasing, will decrease. ”

‘… The Chamber accepts the need for tax services, because it generates a complete structure and an information network that brings a number of benefits to the tax administration. The sector’s proposal is for there to be a differentiated VAT rate of 2%. This amount differs from the one in the commercial sector. ”

Source: Crhoy.com