Costa Rica operates a value-added tax (VAT) system known locally as the Impuesto al Valor Agregado (IVA). Costa Rica’s VAT system is broadly aligned with international VAT/GST principles and incorporates features consistent with modern multistage consumption tax frameworks.
Costa Rican VAT is governed primarily by Law No. 6826, the Ley del Impuesto al Valor Agregado, as comprehensively reformed and restated by Title I of Law No. 9635, the Ley de Fortalecimiento de las Finanzas Públicas. VAT is administered by the Ministry of Finance (Ministerio de Hacienda) through the General Directorate of Taxation (Dirección General de Tributación, DGT). The tax authority is responsible for issuing guidance, processing VAT registrations and returns, overseeing compliance obligations, and enforcing VAT rules in Costa Rica.
Businesses carrying out taxable activities in Costa Rica — whether resident or nonresident — must comply with Costa Rican VAT obligations. This includes VAT registration where required, applying the correct VAT rates, issuing VAT-compliant electronic invoices (comprobantes electrónicos) in accordance with the mandatory e-invoicing regime, maintaining appropriate accounting records, and filing periodic VAT returns in accordance with Costa Rican VAT rules.