More than 300,000 taxpayers declared IVA tax before the due date

By the A.M. Costa Rica staff

The Ministry of Finance, through the new online platform, Virtual Tax Administration, known as ATV for its acronym in Spanish, reported an estimate of more than 430,000 taxpayers already registered, who had to report the declaration of the Value Added Tax D-104, known as VAT tax. Of these, 330,000 taxpayers made the tax report before the due date August 16th.

According to the Ministry, in this ATV platform, more than 200,000 new taxpayers were registered during August, which means that more than 46 percent of taxpayers were not registered previously.

The VAT tax report applies to all representatives of companies or professionals, responsible for declaring the value-added tax that began to be charged since July 1st.

The declaration must be submitted every month, even if there has been no income on the sale of goods or professional services.

D-104 form has a series of new modifications and is mandatory since December 2018, when was approved the l of Law No. 9635, Strengthening of Public Finances.

The fine for not reporting the IVA tax before August 16th could be about $390.

However, there is an exemption for services that were not taxed, before July 1st. In this case, people or companies that before July 1 were not required by law to collect the VAT tax, can submit the D-104 tax report, corresponding to July, only once, in August and September, inclusively.

For more information on the new form of VAT tax declaration, the ministry enabled the section VAT Taxes on its website, available only in Spanish, here.*

As A.M. Costa Rica previously published on March 4th, in the article: Here is a summary of new tax law complexities by Garland M Baker, the legislation to strengthen public finances, or just the “plan fiscal” in Spanish, passed the legislature in December of last year. It changed four significant items in the tax code:

1.)  The law replaced sales taxes with a value-added tax. This begins on July 1.

2.)  Income tax filing requirements and dates changed beginning July 1.

3.)  Payments to public employees become varied starting Dec. 4.

4.)  Law 9635 mandates fiscal responsibility by the government, and this rule starts Jan. 1.

Here are the highlights of each change directed toward expats and not the general public. In no way is this summary meant to be a complete review of this elaborate law.

1.)  Before the changes, sales taxes had two targets: products and services. All products carried sale tax, except for the exceptions. All services did not, again, except for the exceptions. Under the new plan, everything will now be subject to a value-added tax, except for very few exclusions. The tax rate will remain at 13 percent for now. However, the International Monetary Fund is pushing the government to increase the tax to 15 percent.

2.)  Most people are going to hate this one, especially expats happily living their retired lives in Costa Rica without paperwork. Income tax returns are now due for all organizations.  Title II, Article 2, Section A of the law states active, inactive, non-profit, social and every entity considered to be doing some activity must file a tax return.


The full article can be reached at AM Costa Rica archive here.*



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Did you have to declare the VAT tax through the ATV platform?We would like to know your thoughts on this story. Send your comments to news@amcostarica.com

 

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