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July 11, 2023

Costa Rica Tax Authority announces 13% VAT on tourism services from 1 July 2023

The Costa Rica Tax Authority has published a notice on the Ministry of Finance website reminding taxpayers who provide tourism services and are duly registered with the Costa Rican Tourism Institute (known by its Spanish acronym as ICT) that, as of 1 July 2023, they must charge the 13% Value Added Tax (VAT).

This new VAT charge follows the 30 June 2023 termination of differentiated tax treatment (reduced rates) for tourism services provided by taxpayers duly registered with the ICT.

The VAT on tourism services was established in Law No. 9882, Transitory Disposition IX of the Law No. 9635 and the Transitory Disposition IX of the Regulations to the VAT Law.


For additional information with respect to this Alert, please contact the following:

Ernst & Young, Costa Rica

Published by NTD's Tax Technical Knowledge Services group; Carolyn Wright, legal editor