Costa Rica: VAT relief for construction-related services

Costa Rica: VAT relief, construction-related services

An executive decree—number 42659-H—provides for relief from value added tax (VAT) for engineering, architecture, topography, and civil-work construction services.


These services when provided for construction projects that are registered with the Colegio Federado de Ingenieros y de Arquitectos de Costa Rica (regardless of the date registration and approval) will be eligible for the following VAT relief:

  • An exemption from VAT (a 100% exemption) for the period 16 September 2020 through 31 August 2021
  • A reduced VAT rate of 4% for the period 1 September 2021 through 31 August 2022
  • A reduced VAT rate of 8% for the period 1 September 2022 through 31 August 2023

Beginning 1 September 2023, all of these identified construction-related services will be subject to VAT at the general rate of 13%.

Read a March 2021 report [PDF 175 KB] prepared by the KPMG member firm in Costa Rica

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