Costa Rican VAT registration

In Costa Rica, there is no minimum turnover threshold for VAT registration. Any individual or legal entity that habitually or incidentally sells movable property, provides services, or imports goods in Costa Rica is required to register as a VAT taxpayer with the Ministry of Finance (Ministerio de Hacienda). Registration obligations arise from the nature of the taxable activity rather than from reaching a specific revenue level.

Businesses may be registered under one of two regimes:

• The general IVA regime, which covers the majority of businesses and requires monthly VAT returns, the full input VAT credit mechanism, and mandatory electronic invoicing (e-invoices).
• The Simplified Tax Regime (Régimen de Tributación Simplificada, RST), available to qualifying small businesses engaged in specific activities defined by the tax authority. The simplified regime covers both IVA and income tax obligations and operates on a quarterly filing basis. Businesses registered under the RST are exempt from the obligation to issue e-invoices for their operations.

For nonresident businesses, the position depends on the nature of their activities:

• Foreign companies with a physical presence or permanent establishment in Costa Rica must register under the general IVA regime.
• Foreign businesses supplying digital services or intangible goods to recipients in Costa Rica — where the service is consumed within the national territory — must either register directly with the General Directorate of Taxation (Dirección General de Tributación, DGT) and collect and remit IVA at 13%, or opt for withholding IVA, under which Costa Rican credit card issuers and financial institutions withhold and remit the tax on their behalf.
• For B2B supplies of services or intangible goods by nonresident providers not registered in Costa Rica, the reverse charge mechanism applies: the Costa Rican recipient is responsible for self-assessing and declaring the applicable IVA.

The tax authority may automatically register individuals or entities that have not completed the registration process voluntarily.

VAT registration is completed through the TRIBU-CR tax portal, which replaced the ATV platform in October 2025. Registration is formalised using Form D-140 (Declaración de Inscripción en el Registro Único Tributario) and must generally be completed within 10 business days of commencing taxable activities. Applicants typically need to provide:

• Completed registration application (Form D-140/RUT)
• Company name, legal form, and nature of business activities
• Legal address in Costa Rica (a registered office or virtual office address is accepted)
• Tax identification details of directors or legal representatives
• Details of the anticipated taxable activities to be carried out in Costa Rica

A local tax representative is not legally required for registration, though many foreign businesses appoint a local accountant or tax advisor for ongoing compliance. All registered entities are required to have a legal address in Costa Rica.

Once registered, the DGT issues a taxpayer identification number, which also serves as the Costa Rican IVA number. Registration timelines are generally short and can be completed within a few days where documentation is complete.

• Costa Rican citizens: A 9-digit national identification number.
• Resident foreign nationals: An 11- or 12-digit residence card number.
• Companies incorporated in Costa Rica: A 10-digit corporate identification number.

• Nonresident companies: A 10-digit special tax identification number issued by the DGT.

The IVA number is used for VAT reporting, issuance of e-invoices, and all interactions with the Ministry of Finance.

After registering for VAT in Costa Rica, businesses must comply with ongoing VAT obligations, including:

• Filing monthly VAT/IVA returns (Form D-104, now submitted via the TRIBU-CR portal as Form D-150) by the 15th of each month following the reporting period
• Charging and collecting IVA at the applicable rates on taxable supplies
• Issuing e-invoices for all taxable transactions through the Hacienda-validated clearance system
• Maintaining IVA records and accounting documentation in line with Costa Rican legislation
• Paying IVA due by the statutory deadlines

Failure to comply with Costa Rican IVA requirements may result in penalties, interest charges, and enforcement action by the General Directorate of Taxation, particularly in cases of late registration, failure to issue compliant electronic documents, incorrect filings, or unpaid IVA liabilities.