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Costa Rica changes to VAT

  • Aug 28, 2015 | Richard Asquith

Costa Rica changes to VAT

Costa Rica has proposed a range of changes to the exiting Value Added Tax regime, which is in fact closer to a simple sales tax system. The changes include:

  • More services to be subject to the consumption tax
  • Introduction of self-billing and consumption
  • VAT refunds for people below the official poverty line
  • Introduction of reduced VAT rates at 5% for a limited range of basic goods, raw materials and agricultural supplies
  • Refunds of VAT on certain credit card payments to discourage VAT fraud
  • An graduated 1% VAT rise each year from today's 13% until 15% in 2017

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.