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Costa Rica: Proposal for VAT collection mechanism, cross-border or intangible digital services

Costa Rica: Proposal for VAT collection mechanism

The tax administration released for comments a document containing proposals for a charging mechanism that would apply for value added tax (VAT) purposes with regard to cross-border or intangible digital services made using debit cards or credit cards.


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The draft mechanism proposes that Costa Rican issuers of debit cards or credit cards would collect VAT for those purchases made by means of some 200 digital platforms (listed in the document). The digital platforms included in this list could choose to register with the tax administration; otherwise, the VAT collection mechanism would be applied and would collect VAT through the debit cards or credit cards.

Application of the charging mechanism would apply one month after the tax administration provides the official list of suppliers or intermediaries.

Read a December 2019 report (Spanish and English) [PDF 67 KB] prepared by the KPMG member firm in Costa Rica

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