On 4 December 2018, Costa Rica published Law No. 9635 in the Official Gazette, which includes several tax reform measures.
New VAT System
One of the most important aspects of the law is the replacement of the current sales tax system with a value added tax (VAT) system providing for the deduction (credit) of input VAT against output VAT on taxable supplies. Key points of the new VAT system include:
- Supplies of both goods and services in Costa Rica are subject to VAT, including imported…