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Costa Rica: VAT exemption for basic food products

Costa Rica: VAT exemption for basic food products

An executive decree published today, 18 March 2019, in the official gazette provides that certain basic food products will be exempt from the value added tax (VAT) until 1 July 2020.


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The executive decree (no. 41615-MEIC-H) concerns certain basic food products.

  • The decree provides that the identified food products will be subject to the general sales tax at the standard rate.
  • Begining 18 April 2019, these food products will be subject to VAT but will be exempt from VAT until 1 July 2020.
  • After 1 July 2020, these basic food products will be subject to VAT at a reduced rate of 1%.

Read a March 2019 report (Spanish and English) [PDF 56 KB] prepared by the KPMG member firm in Costa Rica

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