VATLive > Blog > VAT > Dominican Republic cuts VAT rate to 16% 2015 - Avalara

Dominican Republic cuts VAT rate to 16% 2015

  • VAT
  • 21 January 2015 | Richard Asquith

Dominican Republic cuts VAT rate to 16% 2015

UPDATE FEB 2015: this rise do not go through.

The Dominican Republic has reduced its standard VAT rate from 18% to 16% from 1 January 2015. It has also raised its reduced VAT rate from 11% to 13%.

VAT is termed Impuesto a la Transferencia de Bienes Industrializados y Servicios in the Dominican Republic. It is levied on most goods and services, with exports being exempt. Some basic foodstuffs are subject to the reduced VAT rate.

In addition to VAT, a ‘Selective Consumption Tax’ is also charged on alcohol and tobacco.


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 this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.