COSTA RICA: Government Announces Postponement of VAT on Foreign Supplies of Digital Services

Ramón Frias
July 21, 2020

The Minister of Finance of Costa Rica has announced that the implementation of VAT on supplies of digital services by foreign providers, which was scheduled to be effective on August 1, 2020, will be postponed until September 15 of this year. According to the Ministry, the change is being made in order to give enough time to the tax administration to negotiate, with affected financial entities, the process for collecting the tax. The postponement is also necessary to ensure that the government is completely prepared to enforce the mandate and the associated obligations related to it.

See here for further details.


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Ramón Frias

Ramon is a Tax Counsel on the Regulatory Analysis team at Sovos. He is licensed to practice law in the Dominican Republic and is a member of the Dominican Bar Association. He has a Certificate Degree from Harvard University as well as a J.D. from the Universidad Autonoma de Santo Domingo. Ramon has written a number of essays about tax administration and has won the first prize in the international essays contest sponsored by the Inter American Center of Tax Administrations (CIAT). Prior to joining Sovos, Ramon worked for more than 10 years in the Department of Revenue of the Dominican Republic where he served as Deputy Director. He is proficient in French and Spanish.
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