The Ministry of Finance published on Thursday, July 10, the list of entities that are exempt from the Value Added Tax (VAT) – Impuesto al Valor Agregado (IVA) in Spanish – as well as details of the procedure in the Exonet system to request the exemption or reduction of the tax rate.
According to the Ley de Fortalecimiento de las Finanzas Públicas (9635) – Law on Strengthening Public Finances – as of July 1, those included in Article 11 of the Value Added Tax, taxpaypers must register in the Exonet system to request an exemption or reduction of the rate.
In order to carry out this procedure, interested parties must access the website: www.hacienda.go.cr, “Sistema Exonet”, located in the “Servicios más utilizados” section and register. This procedure is only carried out online, so taxpayers should not go to the Treasury offices.
Among the list of exonerated are the Cruz Roja Costarricense (Red Cross), Benemérito Cuerpo de Bomberos de Costa Rica (fire department), real estate rentals for micro and small businesses registered with the Ministry of Economy, as well as agricultural land registered with the Ministry of Agriculture and Livestock (MAG).
In addition, imports for concessionaries of public transport used for the provision of collective transportation services for people, Asociación Pro-Hospital Nacional de Niños las Escuela de Agricultura de la Región Tropical Húmeda (Earth) and the Instituto Centroamericano de Administración de Empresas (Incae), among others.
According to Article 8 of the Law on Value Added Tax, exempt are the costs of tuition and credits for the courses provided in public universities; membership fees and monthly payments to professional associations, trade union organizations and business chambers; books, regardless of their format.
Likewise, services provided by the care networks for children and seniors, as well as the senior centers (old age homes), provided they have the proper authorization from the Ministry of Health.
Also exempt from paying the Value Added Taz is the sale of national lotteries, raffles, games and other products of chance issued by the Junta de Protección Social (JPS) – national lottery; the self-consumption of electrical energy generated through the use of solar panels and other renewable sources such as wind, sun and biomass; purchases made by the Caja Costarricense del Seguro Social (CCSS) – social security, and the municipalities.
For more information on this subject, taxpayers can call the General Direction of the Treasury 2284-5287 and 2547-4343, or send an e-mail to: exoneraciones@hacienda.go.cr
