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June 19, 2020

Costa Rica’s Tax Authorities publish guidance on charging and collecting of VAT on cross-border digital services and intangible assets

On 12 June 2020, Costa Rica’s Tax Authorities published, in the Official Gazette, Resolution No. DGT-R-13-2020 (the Resolution), which provides guidance on charging and collecting Value-Added Tax (VAT) on cross-border digital services and intangible assets.

The Resolution regulates the collection of VAT on cross-border digital services, which are services rendered through internet or other digital platform services by foreign digital service providers for use in Costa Rica.

The Resolution also applies to the acquisition of intangible goods by final consumers or VAT taxpayers in Costa Rica from a foreign supplier.

In addition, it establishes the procedure that suppliers and intermediaries of digital services and cross-border intangible goods must follow to voluntarily register before the tax authorities as VAT taxpayers.

The Resolution includes provisions on the collection of VAT by credit or debit card issuers when their cardholders use such cards to purchase digital services or intangible goods through the internet or any other digital platform. The Resolution’s annexes include the list of registered suppliers and intermediaries. The list will be available on the Ministry of Finance’s website and will be updated at least every six months.

The Resolution is effective as of its publication; however, the collection of VAT by credit and debit card issuers should start on the first calendar day of the month following the month in which the tax authorities communicate the list of suppliers and intermediaries (Annex 6) that are subject to VAT on their services or intangible goods. This list may be modified before the collection of the VAT begins.

Suppliers and intermediaries, however, should start collecting VAT on the first calendar day of the second month following the publication of this Resolution.


For additional information with respect to this Alert, please contact the following:

Ernst & Young, S.A., San José, Costa Rica
Ernst & Young LLP (United States), Latin American Business Center, New York
Ernst & Young Abogados, Latin American Business Center, Madrid
Ernst & Young LLP (United Kingdom), Latin American Business Center, London
Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific



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