Costa Rica | Costa Rican Tax Authority updates the list of cross-border digital services subject to VAT

Through the last update, 13 new services are included in the list of cross-border digital services subject to the value-added tax (VAT) and one service provider has been excluded.

The current list contains a total of 148 cross-border digital services subject to the 13% of VAT.

Background

According to the article 30 of the Value Added Tax (VAT) Law, entities that issue credit or debit cards, must collect a 13% VAT when their cardholders purchase certain services through internet or any other digital platform.

As established in the VAT Law, its regulations and Tax Authority Resolution No. DGT-R-13-2020, the Tax Authorities will periodically issue a list of digital service providers or intermediaries that provide services subject to the withholding tax.

In this regard, when services indicated on the Tax Authority’s list appear in the description of a cardholder’s transactions, the withholding tax must be applied.

Update of the list

On 1 June 2023, the Tax Authority updated the list of digital services that will incur the 13% VAT.

This update adds 13 new services are included effective as of 1 June 2023:

• Office Practicum

• Zynga Inc.

• Yoozoo

• Uber*pass

• G2a.com

• Eneba

• IVA-Disney Plus

• *Lilith Mobile

• Adobe.acropro.subs.adobe.com

• Indrive.san.jose

• *Long Tech

• *YouTube Music

• *Playrix Games

AIRBNB registered as a taxpayer before the Tax Authority and therefore AIRBNB services are excluded from the list.

The list of services for which VAT must be charged by credit or debit card issuers is available on the website of the Ministry of Finance (www.hacienda.go.cr).