Costa Rica Introduces VAT On Digital Services


By Global Tax Weekly

Costa Rican Ministry of Finance had confirmed plans to introduce VAT at 13 percent on cross-border digital services rendered by foreign businesses to Costa Rican consumers from August 1. The move was designed to bring the country into line with the BEPS Action 1 recommendations of the OECD on tackling the tax issues of the digitalized economy.

Either digital services providers or payment processing firms are responsible for collecting and remitting VAT on services rendered to Costa Rican consumers. The delay, announced on July 31, is so that financial entities can finalize the necessary computer system changes, the Finance Ministry explained.


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