Definition
The Value Added Tax (VAT) is an indirect tax that falls on consumption, meaning that when a person (legal or natural) purchases an asset or service in Costa Rica, they are paying this tax at a general rate of 13% or in any of the reduced rates of 4%, 2% or 1%.[1]
Procedure
The collection of the VAT must be declared through the form D-104, within the first fifteen calendar days of the following month (15th of each month) through the electronic portal called Virtual Tax Administration (VTA).
It is important to mention that even when no sales or purchases have been made during the month, or when there is no tax to be paid, the respective declaration must always be presented, otherwise, a considerable non-filed return penalty will be payable.
The cancellation of the tax is through connectivity where the bank account is held, through the website of the financial entity, or by going directly to the tellers (windows) of these finance companies: Bank of Costa Rica, BAC San José, COOPENAE, National Bank of Costa Rica and its correspondents and the Davivienda Bank.
Tax Calculation
The resulting difference of deducting the tax credit from the tax debit it’s the amount that the obligated must pay to the tax authorities:
Tax debit – Tax credit = Tax to paid
(VAT charged) (VAT paid)
If you have any questions or require more information on the subject, please do not hesitate to contact us and we will be glad to assist you.
Best Regards,
TACTIC Estudio Legal
[1] Refer to “Ley de Impuesto al Valor Agregado” N° 6826. Available at: http://www.pgrweb.go.cr/scij/Busqueda/Normativa/Normas/nrm_texto_completo.aspx?nValor1=1&nValor2=32526
