Tuesday, 24 November 2020

According to proposal, Airbnb would pay 13% VAT

Currently, Airbnb is not regulated in Costa Rica. In 2018, Airbnb hosts in Costa Rica received about 524,000 guests

According to PLN legisaltor Roberto Thompson, it is almost a fact that the Airbnb in Costa Rica will pay the 13% Value Added Tax (VAT) that goes into effect on July 1.

Currently, Airbnb is not regulated in Costa Rica. In 2018, Airbnb hosts in Costa Rica received about 524,000 guests

The legislator commented that the legislative bill is on track and that in the “very short term” will be ready.

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“Regulating the Airbnb service is getting closer, the 13% VAT rate will be charged and it will be necessary for companies to register before taxation and municipalities,” said Thompson, who is a member of the Legislative Economic Affairs Committee.

The legislator added that the decision will be taken after meetings with hotel businessmen and the tourism sector

The main requirements to register and operate under the non-traditional hosting model are:

  • Register before Taxation (Tributación) and the Costa Rican Tourism Institute (Instituto Costarricense de Turismo – ICT)
  • Issue electronic invoice
  • Ensure customer safety

Airbnb hosts in Costa Rica received about 524,000 guests during 2018, which was an increase of 54% compared to the previous year.

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Currently, anyone can rent a room to a visitor without contributing to the State, while the hotel sector pays social charges and taxes. This is considered an unfair competition against the hotel sector.

 

 

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