Dominican Republic cuts VAT rate to 16% 2015
- 21 January 2015 | Richard Asquith
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.