Panama VAT

Panama introduced a Value Added Tax (VAT) in 1976. Locally, it is known as Impuesto a la transferencia de bienes corporales muebles y la prestación de servicios (ITBMS).

VAT in Panama is operated by the Finance Ministry.

Businesses are required to register for VAT when providing the following taxable supplies:

• Importing goods into Panama
• Sales of goods domestically
• Supply of services
• Leasing of assets