|
Rental owners must
register at Tourism Institute and
collect IVA tax from clients
By the A.M. Costa Rica staff
The Tourism Institute announced the
application of the recently approved law
No.20.865
know as "Law for the
regularization of non-traditional rentals
and its intermediation through digital
platforms," similar to Airbnb. All owners
of rental properties must register in the
Institute's database.
The law defines a property for rent as
villas, houses, condo, rooms, among
others, as offered on platforms such
as Airbnb.
Also, the law requires owners to register
at the Ministry of Finance, for the
purpose of charging the 13 percent VAT
(Value Added Tax) to their customers.
The law also requires owners of rental
properties to register in the database of
the municipality of their community to pay
additional taxes.
This requirement applies to rental owners
who have not been reporting or collecting
taxes before.
According to María Amalia Revelo, Minister
of Tourism, "this law will allow equal
competition within the tourism sector
among the lodging companies and guarantees
an avant-garde step in terms of
regulations to ensure greater protection
for tourists."
According to the Institute, the law
requires owners to send a report of that
database to the Ministry of Finance, "to
proceed with the necessary control,
investigation, and registration of
commercial activity," said the Institute
in its statement.
It is important to clarify that this new
law is not enforced until it is published
in the official government newspaper,
known as La Gaceta.
According to the statistics of the
Institute, during 2017, about 5.2 percent
of tourists who enter via air, used rooms
acquired by this type of platform, such as
Airbnb. The percentage increased to 9.2
percent in 2018.
As A.M. Costa Rica reported last week, the
deputies of the Economic Affairs Committee
approved that Law to make that
non-traditional rentals pay taxes on their
services and thereby increase government
revenue while regulating the commercial
activity as well.
The project would apply to all tourist
rentals in homes, apartments, villas,
chalets, and bungalows, among others. As
well as guaranteeing users security and
protection when they purchase the service
through the platform.
According to Deputy Roberto Thompson, the
project represents a major boost to the
tourism sector. "There is a very important
segment of people who are using this type
of accommodation in Costa Rica. Through
this law, we are trying to regulate and
establish taxes and guarantee minimum
conditions."
On Friday, the Chamber of Tourism, know as
Canatur, celebrated the approval in the
first round of votes for this law.
"For the private sector, this step towards
the regulation of lodging is extremely
important," said Saray Valverde, president
of Canatur.
For several years, Canatur has requested
the regulation of this type of
non-traditional lodging service.
According to the Chamber, this law will
generate more tax revenue for the
government, will protect tourists, and
will create a level playing field for
competition.
Regarding the issue of fair competition,
the Chamber says that in the case of
hotels, in addition to paying taxes, they
must invest large capital in complying
with specific rules and compliance to
protect people with different abilities,
while the informal hosting sites do not.
------------------------------
Will the new law have a negative affect
rental income or is it necessary for
tourist security? We would like to
know your thoughts on this story. Send
your comments to: news@amcostarica.com
|
Want to
write or gripe
about Costa Rica?
Want to submit an event
to our calendar?
Send all the information news@amcostarica.com
Profile pictures are welcome
too !
-No
defamatory pieces will be
accepted.
-We reserve the right to
publish.
|
