Costa Rica: VAT on cross-border digital services; credit, debit card issuers

Costa Rica: VAT on cross-border digital services

The tax administration announced the effective date for application of value added tax (VAT) to cross-border digital services transactions involving credit and debit card issuers has been delayed to 1 October 2020.


Initially, the effective date was set for 1 August 2020. The tax administration established two mechanisms to collect the VAT about transactions for certain digital platforms:

  • Digital service provider’s or intermediary’s registration—Registration by companies selling or trading digital services or intangibles by electronic means, with the tax administration as taxpayers. 
  • Participation by credit card and debit card issuers—VAT to be applied with regard to transactions of their cardholders in the digital platforms listed (and only those platforms). 

Read TaxNewsFlash

With the delayed effective date for credit and debit card issuers, these entities need to determine that they have in place the technology to correctly apply VAT on targeted cross-border transactions.

However, digital services intermediaries and providers that voluntarily registered with the tax administration must apply the VAT mechanism as of 1 August 2020 (as originally established).

Read an August 2020 report (Spanish and English) [PDF 63 KB] prepared by the KPMG member firm in Costa Rica

© 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained 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