Saturday, 26 September 2020

Businesses to be fined if they do not accept plastic

Businesses that don't accept credit or debit cards or an alternative electronic payment face a fine of ¢446,000 colones

Although not as common as it used to be, a business not accepting plastic still occurs. But starting in July, with the entry of the Impuesto al Valor Agregado (IVA) –  Value Added Tax – businesses that do not accept credit or debit cards or an alternative form of digital payment face fines of ¢446,000 colones (one base salary*).

“It is important that businesses and those who provide services in general, must be aware that in addition to the VAT law and the reform of the law on income tax, this other obligation of electronic payments to avoid penalties”, said Silvia Gonzalez, Tax Manager at Grant Thornton.

The objective of the Ministerio de Hacienda (Ministry of Finance) is that most payments be digital, for better control over taxpayers and eliminate tax evasion.

- paying the bills -

One example is the implementation of electronic invoices and the ATV (Administración Tributaria Virtu@l) portal – a taxpayer portal.

As well as the new platforms that it has to develop for the VAT refund in the health sector, in purchases through international platforms, and for authorizations in the system of purchases without tax.

The change would not be so sudden, because currently, Costa Rica leads in contactless payments in Latin America, in addition, its population is the second most bancarized in the continent.

In addition, the Central Bank announced the implementation of a program called Programa L (Entidad Libre  de Efectivo) – program designed between the Banco Central de Costa Rica and financial institutions, which aims to achieve the maximum use of the electronic services available to customers for their collection and payment transactions, which translates into the reduction of risk in cash management and the costs associated with it.

In other words, the Programa L urges institutions to improve conditions to pay with plastic in exchange for some incentives.

- paying the bills -

* In Costa Rica, ‘base salary’ is used to set fines. As the base salary changes, so does the amount of the fine applied

Rico
Ricohttp://www.theqmedia.com
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

Netflix confirms Costa Rica users will charged VAT from October 1

(QCOSTARICA) Starting October 1, Netflix users in Costa Rica will see...

Tolls operators must enable card payment, orders Health

(QCOSTARICA) Toll operators on Ruta 27 and on other roads such...

MOST READ

Brazil: Rio postpones Carnival over coronavirus

(Q24N) Rio de Janeiro's world-famous Carnival parade will not take place in February 2021 due to the coronavirus pandemic, officials announced Thursday. "We came to...

College Blogging: Tips to Write Hype Content

If you’re into blogging, you’ve probably heard Bill Gates’ famous words: Content is king. There’s no better way of capturing the importance of quality...

Reduction in electricity rates could be around the corner

(QCOSTARICA) The possibility of a significant reduction in electricity rates in the coming weeks increases due to key aspects, mainly due to the Instituto...

Bolivia descends into chaos ahead of elections

(Q24N) With roughly one month to go until the Bolivian general election, the country is descending into violent political strife. On September 20, for...

KLM to resume flights in October; Air France and Edelweiss push back dates

(QCOSTARICA) The Dutch airline KLM announced that it would resume direct flights to Costa Rica starting next month, while Air France and Edelweiss are...

They did not last a day: the first flexible delineator posts on ruta 32 downed

(QCOSTARICA) The flexible delineator plastic traffic road divider on the Ruta32 did not last a full day. Crews finished placing them this Sunday at...

Let's Keep This Going!

To be updated with all the latest news and information about Costa Rica and Latin America.

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.