Thursday 23 September 2021

Costa Rica To Tax Soft Drinks At Distributor Level

Paying the bills


Why the billions in English are not like the billions in Spanish

What amount would you prefer to have saved in...

Health confirms 15 cases of malaria on the border with Nicaragua

QCOSTARICA - An outbreak of 15 people positive for...

Conditions worsen for Haitian migrants on US-Mexico border

Q24N - Conditions are deteriorating in a camp on...

Costa Rica, Panama and Dominican Republic seek a solution for Haiti

QCOSTARICA - Costa Rica President Carlos Alvarado, Luis Abinader...

Mexico finds a Latin American ally in Venezuela’s Maduro

Q24N - The recent summit of the Community of...
Paying the bills


Image for illustrative purposes only.
Image for illustrative purposes only.

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 revenue from the sale of soft drinks. For the consumer, soft drinks should not include sales tax at the time of purchase.

- Advertisement -

The General Department of Taxation (Administración Tributaria in Spanish) under the Ministry of Finance, believes that it is easier to collect from distributors, given the manufacture and distribution of soft drinks is concentrated in five major companies.

In contrast, more than 10.000 retailers sell these products, making it harder the proper collection, monitoring and auditing” of the sales tax.

Hacienda says that many are small retailers are registered in the simplified taxation regime, “thus are not required to issue invoices,” said Pablo González, tax expert with ICS Abogados.

The measure also aims to harmonize taxation procedures for calculating the sales tax with a profit margin for the soft drinks which are imported and domestically produced, in order to be consistent with the principles of tax equity and national treatment, according to Hacienda.

Among the leading producers or importers and distributors of soft drinks in Costa Rica: FEMSA (Coca-Cola, Fanta, Sprite, Fresca, others), Florida Bebidas (Pepsi, Mirinda, 7UP, others), Ajecen del Sur (Big Cola and others).

The change implies that distributors and retails incur additional cost to make the change to the tax structure on these products.

- Advertisement -

- Advertisement -
Paying the bills
"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

Costa Rica second last in economic recovery in the region

QCOSTARICA - The Central American region experiences very different realities as...

Group charged migrants US$22K to get them to the United States.

QCOSTARICA - A Costa Rican-Panamanian criminal structure charged migrants of 13...

Subscribe to our stories

To be updated with all the latest news, offers and special announcements.

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.