Costa Rica: Temporary VAT exemption for construction services

Costa Rica: Temporary VAT exemption, construction

Engineering, architecture, topography, and civil works construction services are temporarily exempt from value added tax (VAT) when such services are provided to projects registered with the Costa Rican Engineers and Architects Association (Colegio Federado de Ingenieros y de Arquitectos de Costa Rica).


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The VAT exemption for these construction-related services applies from 16 September 2020 through 31 August 2021.

  • Beginning 1 September 2021, the VAT reduced rate of 4% will apply for these construction services through 31 August 2022.
  • Beginning 1 September 2022, the VAT rate for these construction services will be 8% through 31 August 2023.
  • Beginning 1 September 2023, these construction services will be subject to VAT at the standard rate of 13%.

Read a September 2020 report (Spanish and English) [PDF 67 KB] prepared by the KPMG member firm in Costa Rica

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