Costa Rica 13% VAT launch Jul 2019

Costa Rica remains on track to introduce a 13% Value Added Tax on 1 July 2019. It will replace the existing Sales Tax, which is only due on the sale of goods.

VAT in Costa Rica will be extended to cover most services, unlike the existing Sales Tax which is limited to goods. Exports are exempted. There will have a standard VAT rate of 13%, with three reduced rates:

• 4% Domestic and international airfares; health care
• 2% private education; medicine
• 1% basic domestic essentials