The companies that provide tourist services and that are duly registered with the Costa Rican Tourism Institute (ICT), must collect the rate of 13% of the Value Added Tax (VAT) as of July 1st.
This change, according to EY tax specialists, occurs as a result of the end of the differentiated tax treatment that had been established in Law 9882, a measure that was promoted due to the economic effects caused by the Covid-19 pandemic. and that it made a special exception to what was established by the Law for the Strengthening of Public Finances.
Precisely this Thursday, Executive Decree 43254-H was published, which reforms several articles and a transitory of the Regulations to the Value Added Tax Law.Despite the fact that tourist services began to experience the staggered entry of VAT on July 1, 2021, when the 4% rate began and later, on July 1, 2022, it rose to 8%, the beginning of 13% has caused discontent.
CANATUR assures that the increase hits SMEs and decreases competitiveness
Since last May, when the Government announced its plan that included the collection of VAT by tourist services, the National Chamber of Tourism (CANATUR) strongly opposed it, alleging that this measure will hit middle-class and small and medium-sized people. companies (SMEs).
It also assured that the country’s competitiveness in terms of tourism would decrease. “The correct approach must be aimed at the Government of the Republic carrying out an adequate rationalization of public spending, and particularly, the Ministry of Finance efficiently combating evasion,” said Rubén Acón, president of the Chamber.
He also emphasized that an increase puts Costa Rica at a disadvantage in relation to other tourist destinations. “We do not agree with any increase or new tax. The tourism sector requires incentives and facilities to speed up recovery from the serious effects it suffered from the pandemic and those it is suffering from the appreciation of the colon,” concluded.
