Costa Rica digital services VAT Jul 2019

Foreign providers of digital services to Costa Rican consumers are to be included in the new 13% VAT regime being implemented from 1 July 2019.

The new VAT, replacing the existing sales tax, would be due on regular electronic services (apps; streaming media; e-books and journals; online gaming; software etc) and telecommunications services. Foreign providers would have to register with the tax authorities to provide quarterly VAT filings, declaring sales and VAT due. There would be no scope for reclaiming input VAT suffered.

The provider must be able to establish the location of their customers to support the levying of VAT.