close
Share with your friends

Costa Rica: VAT on cross-border digital services

Costa Rica: VAT on cross-border digital services

Value added tax (VAT) will be imposed on digital services and intangibles acquired from abroad for consumption in Costa Rica effective 1 August 2020.

1000

Related content

The tax administration has provided a list of digital platforms and thus transactions that will be subject to VAT. Transactions of digital platforms that are not listed will not be subject to VAT.

The tax administration has also established two mechanisms to collect the VAT on transactions of those listed digital platforms listed:

  • Digital service provider’s or intermediary’s registration—companies selling or trading digital services or intangibles by electronic means, will be able to register with the tax administration as taxpayers. This registration is limited, and the registered will not have additional obligations other than paying the VAT charged (for instance, no right to apply VAT credits). 
  • Participation by credit card and debit card issuers—companies will apply VAT on the transactions of their cardholders in the digital platforms listed (and only those platforms). 

For their tax purposes, consumers can support the expense and tax credit (when required) with the invoice issued by the service provider and the bank statement of account evidencing the VAT charge.

Read a June 2020 report [PDF 54 KB] prepared by the KPMG member firm in Costa Rica

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal