Policy Development·
Costa Rica Moves Toward a Lower VAT Rate and Expanded Digital Controls
Costa Rica’s VAT system may be heading toward its most significant change since VAT was extended to cross-border digital services in 2020. A bill currently before the Legislative Assembly would reduce the standard VAT rate from 13% to 10%, but only if the benefit is demonstrably passed through to consumers. At the same time, the proposal would make electronic invoicing mandatory as part of the mechanism used to verify compliance.
