18 December 2020
Costa Rica's Ministry of Finance has published a release announcing the issuance of Resolution No. DGT-R-42-2020, which expands the list of companies subject to the collection of VAT on payments for cross-border digital services. This includes the services of Uber, Didi, Disney+, Expedia, Booking, Despegar, and Aplaudir.com. Further, the Resolution provides that the tax administration may include or exclude suppliers or intermediaries by only publishing the updated list on the website www.hacienda.go.cr, without needing to issue a new resolution. The collection of VAT on payments for cross-border digital services began 1 October and, according to the Ministry, has resulted in the collection of more than CRC 1 billion the first month alone.
In addition to the changes noted in the release, Resolution No. DGT-R-42-2020 also provides that agents responsible for collecting VAT on digital service payments must submit a report on all e-commerce transactions that have been processed without the collection of VAT. The report must be prepared for the four-month periods from January to April, May to August, and September to December, and must be submitted by the end of the month following the respective period.
Resolution No. DGT-R-42-2020 was published in the 15 December 2020 edition of the Official Gazette and is effective from that date. The collection of VAT on payments to the newly listed service providers applies from 18 December 2020.
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