Since the covid-19 national emergency, the tourism industry has fallen into crisis mode.
/ The Costa Rica Tourism Board courtesy photo


















































































Published Wednesday, July 22, 2020

Tourist services exempt
from sales tax



By the A.M. Costa Rica staff

In the first round of voting, Congress approved file No. 21934, known as the Tourism Sector Service Law.

Since the covid-19 national emergency, the tourism industry has fallen into crisis mode.

According to Congress, the new law modifies article No.26 of the current Sales Tax Law, known as the Public Finance Strengthening Law.

This adjustment allows all types of tourist services, by individuals or companies that are registered with the Costa Rican Tourism Institute, to be exempt from value-added tax, known as IVA, this year.

In addition, the law allows the tax to be gradually applied. As of July 2021, the tax will be 4 percent. And increase in July 2022 up to 8%, until reaching the 13% tax rate in July 2023.

The National Chamber of Tourism, Canatur, thanked the deputies for the approval of the new law.

"This will allow us to offer more competitive rates in the midst of the crisis," said Rubén Acón, president of the Chamber. "This will undoubtedly help us to encourage internal and international tourism, in due course, without changing the rates due to the collection of that tax."

The second and final vote on the new law is scheduled for Thursday.




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What other strategies should the authorities implement to help the tourism sector during this crisis?
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