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Costa Rica is on the verge of adopting one of its biggest changes in taxes

Starting July 1, 2019, the economic life of Costa Rican households and businesses will face changes. On this day, Costa Rica launches the Value Added Tax (VAT) - Impuesto al Valor Agregado (IVA) in Spanish. On this day important tax reforms will go into effect,...

Hard blow to tourism in Costa Rica

Two aspects included in the Plan Fiscal (tax reform) would hit tourism, making services more expensive and, thus, the cost of vacationing in Costa Rica. A contraction of the national tourism and a reduction of competitiveness as a destination country before other markets in the...

Getting married (and even divorcing) will be more expensive on July 1

If you are planning on getting married (or divorcing), celebrating a birthday party, anniversary or any other type of celebration, be ready to pay more starting on July 1 when the Value Added Tax (VAT) - Impuesto al Valor Agregado (IVA) in Spanish) -...

Starting July 1 all services will be taxed with 13% VAT

Starting July 1 all services will be taxed with 13% Value Added Tax (VAT) - Impuesto al Valor Agregado (IVA) in Spanish. For this, the Ministerio de Hacienda (Ministry of Finance) has prepared a "campaña informativa" (information campaign) ahead of the change in the tax...

The ‘Netflix Tax’ Will NOT Start On July 1; Amazon To Be Excluded From The VAT

Services such as Uber, Airbnb, and Netflix, among others,  will continue without the 13% Value Added Tax (VAT), according to a report by La Republica, at least while the Ministerio de Hacienda (Ministry of Finance) defines the list of companies to which the tax...

According to proposal, Airbnb would pay 13% VAT

According to PLN legisaltor Roberto Thompson, it is almost a fact that the Airbnb in Costa Rica will pay the 13% Value Added Tax (VAT) that goes into effect on July 1. The legislator commented that the legislative bill is on track and that in...

Consensus coming closer on taxing digital economy

(BNamericas) Nearly 130 countries have agreed on a global roadmap proposed by the Organisation for Economic Co-operation and Development (OECD), which could lead to an international consensus to level out the taxation of internet giants by the end of 2020. The 129 members of OECD’s...

350 businesses closed in San Carlos in the last 12 months

According to the local Chamber of Commerce, 350 businesses closed their doors in the canton of San Carlos, Alajuela, 150 in Ciudad Quesada alone, in the past 12 months. Marco Solis, president of the organization explained that the economic situation the country is going through,...

High Consumers Of Electricity and Water Would Pay The VAT

On July 1, the current sales tax (impuesto de ventas in Spanish) will be transformed into the new Value Added Tax - VAT (impuesto al valor agregado - IVA, in Spanish) that will begin taxing services including utilities such as water and electricity. The VAT...

Costa Rica Consumers Will Have To Pay The VAT On Cross-border Services

Sounds like something very technological. The words 'cross-border services' (servicios transfronterizos in Spanish) in the coming weeks will begin to impact the pockets of consumers in Costa Rica. 'Servicios transfronterizos' is the category by tax authorities that includes services such as Uber, Spotify, YouTube Premium,...

Government refuses to charge VAT on Uber trips

As of July 1, Uber users will pay a 13% Value Added Tax (VAT) for each of their trips, as the company plans to collect the tax even though the taxman says it will not collect it from the company until the activity is...

Construction will become more expensive with tax reform

With the entry into force of the Value Added Tax (VAT) - Impuesto al Valor Agregado (IVA) in Spanish -, all services necessary to complete a construction process will increase by having to charge a tax of 13% on the invoices issued. This is a...

Legislators Approve Plan Fiscal, President Signs Into Law

Legislators on Monday afternoon approved in second and final debate the Plan Fiscal - Ley de Fortalecimiento de las Finanzas Públicas - with the aim of alleviating the country's fiscal deficit. The Tax Reform bill was approved with the votes of 34 votes in favor...

#DontBeFooled: Tax reform does not include charging VAT for purchases made abroad

#DontBeFooled. False are the reports that the  Value Added Tax (VAT) - Impuesto Sobre el Valor Agregado (IVA) in Spanish - applies to purchase made outside of Costa Rica. False is also the reports that purchases made outside of the country with cards issued...

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

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...

Another Try! Government Sends Legislators New Draft Tax Reform

In an effort to keep alive the reforms to the Plan Fiscal (Tax Reforms), the government of Carlos Alvarado delivered to the legislative caucuses a new substitute text, which includes changes in the articles on the Value Added Tax (VAT), income tax and unemployment...

Tax Reforms To Suffer New Impasse

Today, Monday, the tax reform bill "Ley de Fortalecimiento de las finanzas públicas' will suffer a new impasse: a pause in the legislative process to make way for the new Legislative Assembly that forms on May 1. On April 30, the current crop of legislators...

Netflix Yes, Amazon No With Respect To The VAT

The Ministerio de Hacienda (Ministry of Finance) explained on Friday that the proposed 13% Value Added Tax (VAT) on goods on services being processed through Congress that includes taxing online purchases would be applied to Netflix, but not to Amazon. Hacienda explained that the tax...

Uber Trips Would Be Taxed If VAT Is Approved

Legal or not, the tax plan that is in the process in Congress,  if approved, would have users of Uber pay the Value Added Tax (VAT) on their trips. The VAT on Uber trips would be 13%. According to Priscilla Piedra, the general director of Hacienda...

Internet Purchases Would Pay Double Tax, If Proposed Tax Reform Approved

Purchases made online in Costa Rica would have two types of taxes, if the current text of the Ley de Fortalecimiento de las Finanzas Públicas (tax reform bill), making its way to the legislative process is approved after reaching the full Legislative Assembly on...

President-elect Alvarado Faces Biggest Deficit In Three Decades

The challenge facing the next government led by President-elect Carlos Alvarado, is a Costa Rica economy facing its biggest fiscal deficit in 30 years, when more than one-third of the central government's debt is due and without many instruments to finance it, with permission...

One Step Closer to a Tax Reform

The Costa Rican Legislature has accepted a fast track bill that would transform the 13% sales tax into a Value Added Tax (VAT) and in addition a 4% rate on the purchase of packaging, wrapping and raw materials, among other things. The Impuesto al Valor...

Government Proposes To Charge 4% VAT Tax On Airline Tickets, Books and Machinery

Expected today, Thursday, is the government's final draft of its tax reform that establishes two Value Added Tax (VAT) rates -  Impuesto Sobre el Valor Agregado (IVA) in Spanish - one 13% and the other 4%, with the aim of alleviating the deterioration of the...

End of Real Estate…….

The Legislative Assembly, our answer to Congress, is looking favorably and closely to charging renters a 13% tax on rental housing in Costa Rica, as part of the plan to move the country from a sales tax (currently 13%) to a value added tax...

Government Decides To Propose A 13% VAT

Being more feasible to obtain the 29 votes needed in Congress, the Government decided to propose transforming the current 13% sales tax to a Impuesto Sobre el Valor Agregado (IVA)- Value Added Tax (VAT) - instead of the 15% it had been promoting. The Vice...

Government Proposes To Charge A 15% Tax For Using Services Like Netflix

Intent on solving the country's current financial problems, the government today (Thursday) presented to legislators a new tax plan with the expectation of reducing the gap between expenditure and income from 5% to 2% of Gross Domestic Product (GDP). Among the most relevant points of...

Colombia Mulls Hike In Value Added Tax (TAX)

Colombia Mulls Value Added Tax (TAX) Hike(TODAY COLOMBIA) Colombia is due to hike its value-added tax (VAT) rate to 19 percent from 16 percent. The measure was included in a tax reform bill that was recently approved by Congress. The hike would come into effect...

Costa Rica Urged To Adopt VAT (Value Added Tax)

Q COSTA RICA NEWS - The International Monetary Fund (IMF) has urged Costa Rican lawmakers to agree on much-needed valued added tax (VAT) that would replace the current sales tax on purchases and income tax reforms. The report said that the country has increased its...

Will There Be A Light At the End of the Fiscal Reform Tunnel in Costa Rica?

QCOSTARICA - Experts warn that the draft law which aims to raise income tax and convert sales tax into Value Added Tax (VAT) might not be approved for two years, despite the government's intention to have it place before the end of this year. The...

Hacienda Extends Consultation on Tax Reform

QCOSTARICA - The Ministry of Finance (Ministerio de Hacienda) has postponed until April 17 the deadline for individuals and businesses to comment on the draft legislation reforming income and sales taxes. Originally the deadline for providing comments on the tax proposal was March 27, but...

NOT The Way To Go Costa Rica, To Tax Electricity, Water, Rents and Health

TICO BULL - One of the issues made clear by both foreign and national businesses, is that Costa Rica has to cut its electricity rates. So, while the president on the one hand gives us the impression that he agrees that electricity rates are high...

Government Plans To Create 15% VAT On Goods and Services

QCOSTARICA - The government on Tuesday proposed transforming the current sales tax of 13% to a Value Added Tax (VAT), levied both on goods and services, at a rate of 15%. The proposal by the Ministry of Finance (Ministerio de Hacienda) establishes a gradual adjustment:...

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