More

    Consider VAT on Digital Services as Deductible Expenses in Favor of your Company in Costa Rica

    Must Read

    Coffee, the Aroma of Costa Rica

    Costa Rican coffee is the best! You come to appreciate it more when you travel to other...

    Discover What The Islands and Wetlands of Costa Rica Have For You

    Explore the unknown of the Islands and Wetlands of Costa Rica. If you are looking for an...

    A Dream Beach in Costa Rica

    Finding yourself in Costa Rica and knowing that there is a dream beach, of so many that...
    TCRN STAFFhttp://www.TheCostaRicaNews.com
    Like you, we are tired of corporate media that is politically driven and one sided. So we decided to focus on news that’s important to people. We’re Creating a Conscious alternative news network that we feel the world needs and we need your help! We can’t do this without you! Support news and media that matters and that can help change our world!

    If you are an entrepreneur or freelancer, you may see the 13% VAT on cross-border digital services as an additional expense that you must add month to month, however, consider the possibility that it is part of deductible expenses. This is money in favor of the taxpayer, as they are amounts that can be subtracted from the debt or tax debit when paying taxes.

    But it is not just any activity, since, for example, Netflix, if it is for mere entertainment at leisure, cannot be included as a deductible expense. For this to be the case, consider the digital service you want, and verify that it meets these requirements, according to experts: it is useful, necessary and relevant for your activity, you have reliable proof that this is the case and the withholdings have been made.

    It´s the law

    TCRN

    For example, if you have a financial institution or are part of a stock exchange, you could apply it to Bloomberg, which is a company that was registered in Costa Rica to collect VAT directly, and which is useful for those entities, as it requires a count with this data at hand for its daily management.

    Or, Dropbox, for a company that requires information storage to back up its files or access to secure data; LinkedIn, for a company that is dedicated to recruiting staff, as it is a tool to search for professionals or profiles, arrange job interviews, or publish vacant positions, among others.

    One that in theory could be a deductible expense is UBER, which, although the transport that can be hired may be useful for the activity of a taxpayer, although experts doubt that it can be included.

    “The service will be taxed with 13% VAT, but the deductibility of the expense will be subject to other legal assessments, since there is no clarity on how the income not only of the platform will be taxed, but also of the associates that perform the service” said Silvia González, Grant Thornton Tax and Legal partner.

    Relocate to beach work remote
    Resonance has been created to bring together a community of digital nomads, entrepreneurs, innovators, wisdom keepers, alternative thinkers, mentors and light leaders from all over the planet to bridge the gap between demanding work and living a lifestyle that offers the opportunity to live and work in an environment that is nourishing and supportive.

    - Advertisement -

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    - Advertisement -

    Latest News

    Coffee, the Aroma of Costa Rica

    Costa Rican coffee is the best! You come to appreciate it more when you travel to other...

    Discover What The Islands and Wetlands of Costa Rica Have For You

    Explore the unknown of the Islands and Wetlands of Costa Rica. If you are looking for an adventure and not the kind...

    A Dream Beach in Costa Rica

    Finding yourself in Costa Rica and knowing that there is a dream beach, of so many that the land of “Pure Life”...

    Attention Women: Touch Yourself and Save Your Life

    October 19th marks International Day against Breast Cancer. This date aims to sensitize the population with a key message: The importance...

    San Isidro del General and its Unique Cultural Atmosphere

    San Isidro del General is a town, and head of the canton of Pérez Zeledón, south of the province of San José in Costa Rica Stop for a moment (or more) to enjoy the atmosphere
    - Advertisement -

    More Articles Like This

    - Advertisement -
    Language »