Guide to Costa Rica VAT Taxability and Rates
Updated 3 months ago
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Understanding what is taxable, at what rate, and under what circumstances is key to staying compliant in Costa Rica. This article breaks down how VAT applies to different types of transactions.
Standard VAT Rate
The standard VAT rate in Costa Rica is 13%, which applies to most domestic sales of goods and services.
Transaction Types and Tax Treatment
Transaction Type | Tax Treatment |
|---|---|
B2B Domestic (buyer and seller both in Costa Rica) | 13% charged by the seller |
B2C Domestic (buyer and seller both in Costa Rica) | 13% charged by the seller |
B2B Cross-Border Imports (buyer is in Costa Rica) | Buyer self-assesses via Reverse Charge |
B2C Cross-Border Imports (buyer is in Costa Rica) | Not applicable |
B2B Cross-Border Exports (seller is in Costa Rica) | Zero-rated (0%) |
B2C Cross-Border Exports (seller is in Costa Rica) | Zero-rated (0%) |
Note on Zero-Rated Exports: While Costa Rica applies a 0% rate on exports, the destination country may still require you to apply their own VAT. Always consult the rules of the country you are exporting to.
Non-Profit Entities
Sales to non-profit or charitable organizations are still taxable in Costa Rica, provided the underlying supply is not otherwise exempt.
CAByS Product Classification Codes
All electronic invoices issued by resident businesses in Costa Rica must include a 13-digit CAByS code for each line item. This is a mandatory classification system used for VAT reporting purposes. Non-resident simplified registrants are not required to use CAByS codes.
Tax Holidays
Costa Rica does not have any VAT tax holidays.
Digital Services Tax (DST)
Costa Rica does not impose a separate Digital Services Tax (DST) at this time.
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