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Costa Rica Uber to charge 13% VAT

  • Apr 25, 2019 | Richard Asquith

Online ride-sharing company, Uber, has announced that it will be charging 13% VAT to consumers using its services. The change in policy may be to head off draft plans to raise a higher rate services tax on car ride platforms.

Costa Rica is due to implement VAT in July 2019, replacing the existing 13% Sales Tax. The difference will be that VAT is charged on B2B transactions throughout the supply chain to the final consumer. Businesses will be able to recover their VAT paid by offsetting it against the VAT they then charge their customers.

The new VAT regime will also be levied on digital services sold to consumers, including: streaming media, online gaming, e-gambling, e-books, software and other SaaS supplies.

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.
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