On 31 May 2019, Costa Rica’s Ministry of Finance released a new draft ruling relating to the implementation of a Value Added Tax (VAT) regime that will replace the General Sales Tax (GST) on 1 July 2019. The draft ruling includes updated provisions on the tax collection model that would be applicable to cross-border supplies of digital services provided by nonresident businesses.
The introduction of a VAT regime was included in the Public Finance Strengthening Project, published in Costa Rica’s official gazette on 5 December 2018. The first draft regulations relating to the implementation of a VAT regime were issued on 29 January 2019. An additional draft ruling was issued on 6 June 2019 regarding the VAT refund procedure in cases where VAT is incorrectly charged on supplies of goods and services to Costa Rican customers.
Source Deloitte
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