The collection of 13% IVA will be applied to digital services generated in other countries.
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Published Wednesday, December 16, 2020

More app and online purchases
collect sales tax

By the A.M. Costa Rica staff

As of next Friday, the following apps: Uber, Didi, Disney +, Expedia, Booking, Despegar and Applausos (an application created in the U.S. to access concerts) must collect 13% of the value-added tax, known as IVA.

According to the Ministry of Finance, these applications will collect the tax automatically, following the recent resolution on the implementation of taxes to purchasing goods or online services.

This resolution allows the ministry to include or exclude companies subject to tax in the list of apps that must collect sales tax. The list was published on the ministry webpage.

During October, the first month of the new 13% of value-added tax for online purchases, the government collected $1,696,575, according to the ministry. Of this amount, 68% was paid in dollars and the rest in colones.

The deadline for collection of 13% IVA, on purchases made online, was originally established to be applied beginning Aug. 1. But, that was moved to Oct. 1 because banks and companies had to finish the development of systems for the application of the tax, the ministry said.

The collection of 13% IVA will be applied to digital services generated in other countries. The tax also applies to the use of international platforms that have representation in the country.

International digital services are understood to be those provided by a company not located in the country through the internet or any other digital platform, such as Amazon, Uber, Hotels.com, HBO, Netflix, among others. 

The collection of the international digital services tax was established following the recommendations of the Organization for Economic Co-operation and Development, Priscilla Zamora-Rojas, a representative of the ministry said.



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Is it a smart strategy by the Costa Rican government to charge new taxes during the pandemic? We would like to know your thoughts on this story. Send your comments to news@amcostarica.com






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