Thursday 17 June 2021

Moratorium on Tourism Tax

Turismo9-full

COSTA RICA NEWS — The government has agreed on a moratorium on the 13% sales tax on recreational tourism activities in Costa Rica.

The president of the  Cámara Costarricense de Turismo (Canatur) – Tourism Chamber, Pablo Heriberto Abarca, explained that the chamber reached an agreement with the government on  a moratorium in effect until 31 December 2015 and the collection of the tax will apply to all companies that offer recreational activities from 1 January 2016.

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Abarca added that a condition is not to have any retroactive tax once the draft law is approved.

The Ministerio de Hacienda implemented the collection of sales tax on recreational activities such as hiking, rappelling, and bungee canopy, among others.

The tax is based a directive by Taxation, DGT-CI-06-14 dated July 30, 2014 and to date has affected at least 14 tourist operator who have been notified of their past due tax payment.

Abarca said that there is one operator in San Carlos who owes close to a million dollars, who would be forced to sell or close the business to pay the tax.

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The Chamber is asking the government to make the adjustments to the bill in the coming six weeks, before the Legislative Assembly begins its year end recess.

 

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