  The collection of
13% IVA, will be applied to digital services generated
in other countries.
/ A.M. Costa Rica wire services photo |
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 Published Monday, August 3, 2020 New
13% sales tax on online
purchases moved to October By the A.M. Costa Rica staff The deadline for collection of 13% of the value-added tax, known as IVA, on purchases made online, was moved to begin Oct. 1 because banks and companies must finish the development of systems for the application of the tax, announced the Ministry of Finance. The tax was originally established to be applied beginning Aug. 1. Now, starting Oct. 1, 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 many others. To collect this tax, two mechanisms were established: • Direct collection by the digital service provider. In this case, the foreign company will charge the tax directly to the client. International companies that directly charge taxes must be registered with the Ministry of Finance in Costa Rica. • Direct collection by debit or credit card bank issuers. In this case, banks will automatically charge the tax when detecting a payment made with a card, for each purchase made on international companies listed by the Ministry of Finance. The list of these companies can be reached at the Ministry website. According to the Ministry, the list will be updated every six months with information on more companies charging IVA tax and those companies excluded from the tax. According to Priscilla Zamora-Rojas, representative of the Ministry, the collection of the international digital services tax was established following the recommendations of the Organization for Economic Co-operation and Development, OECD. ---------------------- How do you benefit from the government applying more taxes during the economic crisis caused by the pandemic? We would like to know your thoughts on this story. Send your comments to news@amcostarica.com |
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