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    Companies Registered with the Costa Rican Tourism Institute are Exempt from VAT until July

    Tamarindo Chamber of Commerce and Tourism convened an event to analyze the tax panorama of the sector

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    Companies registered with the Costa Rican Tourism Institute (ICT) as businesses that operate in this sector are exempt – until July 1st – from the payment of Value Added Tax (VAT) in accordance with an official resolution of the General Directorate of Direct Taxation provided that they were not taxed before the entry into force of that tax.

    As explained by experts, official notice DGT-028-2021 indicates that companies in the tourism sector that are registered as such in the ICT will not have to pay VAT until July 1st of this year; However, as of that date, they must pay 4 percent, after July 1st, 2022, 8 percent, and after July 1st, 2023, 13 percent.

    During a special event organized by the Tamarindo Chamber of Commerce and Tourism (CCTT) at the Hotel Tamarindo Diriá Convention Center, Tico tax experts reviewed the current tax panorama in relation to companies in this sector.

    The purpose was to offer a clear glimpse of the current situation at a time when the COVID-19 Pandemic has especially hit this segment of the productive market that before the health emergency was one of the most important for the national economy.

    Severe blow


    Figures from www.swissinfo.ch, based on the ICT, indicate that tourism in Costa Rica during 2020 contracted 70 percent, in addition, before the Pandemic it contributed about 10 percent of the Gross Domestic Product and generated 600 thousand jobs.

    The purpose of organizing this talk related to tribura policy focused on the tourism sector, had the goal of beginning to “visualize possible measures” that could be proposed to encourage the growth of this sector that has a strong impact especially in rural areas of the country.

    “There is still a long way to go in order to have figures similar to the pre-Pandemic era; For that reason, it is our obligation to propose concrete solutions that can lead us back to the right path. We need clear policies regarding the payment of taxes and incentives to achieve a speedy recovery”, recommended the experts.

    The data of the Comprehensive Management Plan of the Tamarindo Tourist Destination 2019-2022 developed by the ICT with the support of the CCTT -among other organizations- indicates that this District of the canton of Santa Cruz has 108 lodging companies with 1990 rooms.

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    2 COMMENTS

    1. We have returned to Costa Rica this year for our 3rd year in a row. Our reason was to hopefully help establish some more investment into our tico friends. We will be back again looking for real estate and bonding more with the most beautiful country in the world.

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