VAT rates in Costa Rica

Quick overview

Standard Rate	Reduced Rate	Other Rates
13%	1%, 2%, 4%	0%, Exempt

The local name for VAT in Costa Rica is Value-added tax (VAT).

There are basically 4 VAT rates in Costa Rica:

• Standard VAT rate is 13%4%
• Reduced rates of 1%, 2%,

Recent developments

For more information about (recent) rate change developments in Costa Rica, please click HERE.

Standard rate: 13%

This rate applies for all transactions that take place in Costa Rica, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).

Reduced rate: 1%

• Goods from the basic consumption basket”

Reduced rate: 2%

• Medicines
• Private education services
• Personal insurance premiums

Reduced rate: 4%

• Private health services
• Local flight tickets
• Construction-related services

Exempt supplies, with out the right to deduct input VAT

• Veterinarian services, including livestock
• Electricity
• Books, musical compositions and paintings
• Re-importation of national goods

Zero rate (0%)

• Goods and services destined for exports, goods and services sold to a beneficiary of Free Trade Zone Regime (FTZR)
• Books
• Services rendered for cultural radio stations
• Private education services

A global VAT/GST rate overview can be found here (note this is a work in progress).

This post was last updated on October 31, 2021.

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