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.
Should you register for Panamanian VAT?
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