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Costa Rica: VAT rate of 4% for engineering, architectural, construction services

Costa Rica: VAT rate of 4%, engineering, architecture

The rate of value added tax (VAT) applicable for engineering, architecture, topography, and civil works construction services will be 4%, effective 1 July 2020.


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The VAT rate of 4% will apply for one year, until 30 June 2021.

The 4% VAT rate applies for eligible projects (that is, those civil works projects that have obtained approval from the Colegio Federado de Ingenieros y Arquitectos before 30 September 2019). 

Eligible projects will be registered in the Exonet system, and then will be granted an authorization number and exoneration generic note. To claim the 4% rate, the taxpayer must indicate the corresponding project number and the authorization number on invoices that reflect the VAT rate of 4%.

Read a May 2020 report (Spanish and English) [PDF 87 KB] prepared by the KPMG member firm in Costa Rica

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