Monday 20 September 2021

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

Paying the bills

Latest

1,308 complaints about parties and agglomerations this weekend

QCOSTARICA - Police actions to enforce health regulations do...

ELON MUSK LAYS OUT WHEN TESLA WILL START RECEIVING BITCOIN

Following the series of accusations and backlash levelled against...

Top 3 Tips for Better Online Casino Security

The gambling industry has prospered over the years and...

Today’s Vehicle Restriction September 20: Plates ending in “1 & 2” CANNOT circulate

QCOSTARICA - For today, Monday, September 20, vehicles with...

Athleta women’s brand opened its first store outside North America in Costa Rica

QCOSTARICA - Gap Inc.'s Athleta brand announced the opening...

Carlos Alvarado: Vaccine retention ‘delays global solution and increases risk of new virus variables’

QCOSTARICA - Costa Rica President Carlos Alvarado showed his...
Paying the bills

Share

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 the simple Impuesto de Ventas (IV) or Sales Tax currently applied to consumer purchases.

Sit bakc, enjoy, mostly like the IVA, if and when it is implemented, won’t apply to your Netflix if you don’t make payment using Costa Rica plastic.

One of the items that would be taxed IF and when the IVA is approved and goes into effect is Netflix.

- Advertisement -

That is, for the current monthly Netflix of $10.99 (¢6,300 colones), the cost would be US$12.41 with the 13% tax, if payment is processed in Costa Rica.

To collect the tax, the law would require issuers of credit and debit cards to collect the tax when processing the payment.

But what of payments made on cards or other online payments gateways with no connection to Costa Rica payment options such as credit/debit cards issued in the U.S., Canada, Europe, Paypal, Payoneer, Paxum, etc.?

That is, the tax on your Netflix or digital services such as hosting for websites, domain registration, antivirus, etc, would only apply if you made payment using a credit/debit card issued in Costa Rica.

Hopefully, the short arm of the Tico tax man won’t reach far enough to tax us foreigners who call Costa Rica home, outside the borders.

Again, not charged on a Costa Rica card means no IVA.

- Advertisement -

Maybe. In Costa Rica, everything is a maybe. Even maybe itself.


Use the comment section below or comment on our official Facebook page. I would like to hear your opinion on this.

- Advertisement -
Paying the bills
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

Will that be Cash or Sinpe Móvil?

QCOSTARICA - Sinpe Móvil is easy to use. From your phone,...

Maikol Yordan is no longer lost, he’s on Amazon Prime Video

Q MAGAZINE - The Costa Rican movies "Maikol Yordan de Viaje...

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.