Costa Rica IVA at a glance
| Standard rate | 13% IVA (Impuesto al Valor Agregado) — introduced on 1 July 2019 under the Ley de Fortalecimiento de las Finanzas Públicas (Ley 9635), replacing the previous Impuesto General sobre las Ventas (IGV) |
| Reduced rates | 4% — private health services, private education above set thresholds; 2% — medicines, private health insurance premiums; 1% — basic food basket (canasta básica), certain agricultural inputs and machinery |
| Zero-rated supplies | 0% — exports of goods, qualifying exported services, supplies to Costa Rican Free Trade Zones (Zonas Francas) under specific conditions |
| Exempt supplies | Categories under Ley 9635 — certain medical services in public-sector channels, residential rentals below set thresholds, certain financial services, certain educational services in regulated channels |
| Tax architecture | National IVA administered by the Dirección General de Tributación (DGT) under the Ministerio de Hacienda. No regional or municipal VAT-equivalent layer. |
| Domestic registration | Mandatory at commencement of taxable activity through DGT’s Registro Único Tributario — issued the Número de Identificación Tributaria. The Régimen General applies to standard taxpayers; the Régimen de Tributación Simplificada (RTS) applies to small traders under specific turnover and capital thresholds. |
| Foreign digital services regime | Effective 1 October 2020 under Resolución DGT-R-13-2020 and successive guidance. Non-resident vendors providing digital services to Costa Rican consumers are subject to IVA — collection typically operates through credit-card and intermediary withholding agents under the platform-tax model rather than direct vendor registration in most cases. |
| Tax authority | Dirección General de Tributación (DGT) — hacienda.go.cr. Administers IVA, ISR (Impuesto sobre la Renta), and electronic invoicing through the Sistema de Facturación Electrónica. |
| Filing — domestic regular taxpayers | Monthly IVA return (Formulario D-104) through the Administración Tributaria Virtual (ATV) portal by the 15th of the month following the tax period. |
| Filing — RTS taxpayers | Quarterly simplified declaration based on category. |
| Electronic invoicing | Sistema de Facturación Electrónica — mandatory for all IVA taxpayers since 2018. Comprobantes Electrónicos (facturas, tiquetes, notas de crédito/débito) issued through DGT-approved channels with XML structure and real-time validation. |
| Late-submission fine | Specific scaled fines under the Código de Normas y Procedimientos Tributarios — typically calculated as percentages of base salary unit (salario base) or fixed colones amounts. |
| Late-payment interest | Interest at DGT-published rate (revised periodically), typically around 12% per year. |
| Under-reporting penalty | Sanción por inexactitud — typically 50–150% of underpaid IVA depending on circumstances; higher exposure for fraudulent under-reporting under Código de Normas y Procedimientos Tributarios. |
| Tax evasion | Criminal prosecution under Article 92 et seq. of the Código de Normas y Procedimientos Tributarios; imprisonment exposure for material amounts. |
| Records retention | 5 years from the date of the relevant tax filing. |
| Currency | Costa Rican Colón (CRC). USD ≈ 510 CRC. |
| Statute | Ley 9635 (Ley de Fortalecimiento de las Finanzas Públicas) — IVA framework. Ley 4755 — Código de Normas y Procedimientos Tributarios. Resolución DGT-R-13-2020 — foreign digital services. DGT Resolutions and administrative guidance. |
Do I need to comply? — 60-second check
Have you supplied taxable goods or services in Costa Rica in the past month, or are you about to? If yes, you’re in scope from commencement — Costa Rica’s IVA framework has no general turnover threshold for the Régimen General. The 13% standard rate applies to most supplies, with reduced rates (4%, 2%, 1%) for specific listed categories under Ley 9635 and the canasta básica.
Four questions, in order:
- Costa Rican-resident business? All taxable activity is in scope from commencement. The structural choice is between Régimen General (standard) and Régimen de Tributación Simplificada (small traders under specific thresholds). Local Costa Rican Business track.
- Overseas business supplying digital services to Costa Rican consumers? Foreign SaaS / Digital Services Seller track. The platform-tax model under Resolución DGT-R-13-2020 (effective October 2020) operates primarily through credit-card and intermediary withholding rather than direct vendor registration in most cases.
- Overseas business shipping physical goods to Costa Rican consumers — Amazon-equivalent regional platforms, your own store? Foreign E-commerce Seller track. Import IVA at 13% applies at customs (Aduanas) alongside Customs Duty (DAI) and selective consumption tax on listed categories.
- Overseas business importing goods into Costa Rica for distribution, manufacturing, or onward sale? Foreign Importer track. Import IVA at 13% applies at customs on customs value + DAI + applicable charges. The Central American Common Market (CACM) framework and Costa Rica’s Zonas Francas regime provide structural preferential treatment under specific conditions.
Two contextual points. First: Costa Rica’s IVA replaced the prior IGV (Impuesto General sobre las Ventas) on 1 July 2019 — meaning the modern broad-base IVA architecture is only six years old. Pre-2019 commentary referencing IGV is structurally obsolete. Second: Costa Rica’s Zonas Francas regime is one of the most operationally significant in Central America — host to major multinational operations (medical devices, services, technology) — and offers specific IVA, customs, and income-tax treatment under qualifying conditions.
Quick-jump to your persona
- Foreign SaaS / Digital Services Seller into Costa Rica
- Foreign E-commerce Seller into Costa Rica
- Foreign Importer / Physical Goods Seller
- Local Costa Rican Business
Foreign SaaS / Digital Services Seller into Costa Rica
Sell SaaS or digital services into Costa Rica from outside? You’re operating under Resolución DGT-R-13-2020 and the platform-tax / intermediary-withholding model. 13% IVA applies to B2C digital services to Costa Rican consumers; in most cases collection runs through credit-card intermediaries and payment processors withholding at the transaction level rather than direct vendor registration with DGT. The B2B portion to NIT-registered Costa Rican businesses operates under self-assessment mechanisms.
Are your Costa Rican sales actually in Costa Rica’s tax base?
Place of supply for cross-border digital services follows the recipient’s location. Resolución DGT-R-13-2020 and DGT guidance set out indicators: customer billing address in Costa Rica, payment instrument issued by a Costa Rican institution, IP address resolving to Costa Rica, and other commercially relevant location data.
Take Donegal Wellness Ltd, an Irish wellness platform with EUR 22 million revenue globally. Donegal offers a subscription-based meditation and corporate wellness platform used by consumers and HR teams across Central America. Annual Costa Rican B2C revenue reached USD 480,000 in 2025; B2B revenue to two San José corporate accounts added USD 90,000. Donegal’s B2C subscriptions are subject to the platform-tax withholding model — Costa Rican credit-card processors withhold 13% IVA on cross-border subscriptions at the transaction level. B2B subscriptions to NIT-registered customers operate under reverse-charge self-assessment by the Costa Rican business. Donegal’s compliance burden is operationally low compared to direct-registration regimes.
When the DGT clock starts running
Three operational triggers under the post-2020 framework.
The platform-tax trigger applies on cross-border digital service supplies to Costa Rican B2C consumers — collected at the transaction level by credit-card and payment-processor intermediaries.
The B2B reverse-charge trigger applies for imported services to NIT-registered Costa Rican businesses, where the Costa Rican customer self-assesses on its monthly Formulario D-104.
The permanent-establishment trigger applies when an overseas company creates a Costa Rican presence — fixed place of business, dependent agent concluding contracts, or local sales infrastructure may create taxable presence under Costa Rican and applicable tax-treaty rules.
Operating model — withholding vs registration
In most cases, foreign digital services sellers into Costa Rica operate under the intermediary-withholding model — credit-card and payment-processor intermediaries withhold 13% IVA on cross-border subscriptions at the transaction level and remit to DGT under the platform-tax framework. The foreign vendor’s operational burden is limited to: ensuring pricing models accommodate the 13% being withheld; documenting that the platform-tax model applies (avoids double-charging); maintaining records for any audit.
For very large B2C operations or where the platform-tax model does not apply (e.g. specific routing not captured by Costa Rican intermediaries), DGT may require direct registration. Verify the current operating model with a Costa Rican tax advisor before scaling.
What you charge, and on what
13% IVA on B2C cross-border digital services to Costa Rican consumers. In the platform-tax model, this is collected by the intermediary, not invoiced by the foreign vendor. For B2B supplies to NIT-registered businesses, the reverse-charge mechanism applies.
What this actually costs
- Costa Rican tax advisor retainer: USD 3,000–10,000 per year.
- Documentation maintenance for intermediary-withholding compliance: USD 1,500–4,000 per year.
- Annual reasonableness review by Contador Público Autorizado: USD 2,000–6,500.
- Direct registration setup (if required for the operating model): USD 6,000–18,000 initial + USD 12,000–35,000 annual.
What we see foreign SaaS sellers get wrong
Three patterns recur.
The first: assuming direct registration is required when the platform-tax model captures the transactions — adds operational overhead without compliance benefit.
The second: ignoring the B2B reverse-charge analysis on customer base — getting NIT verification wrong creates dual exposure.
The third: over-relying on the pre-2019 IGV commentary still circulating online — the IVA regime is structurally different.
| Selling SaaS into Costa Rica? TaxDo handles the platform-tax framework. Costa Rica’s IVA for cross-border digital services operates primarily through credit-card and intermediary withholding under Resolución DGT-R-13-2020 — but the analysis of when direct registration applies, B2B reverse-charge mechanics, and documentation requirements is non-trivial. TaxDo’s Costa Rica compliance pod handles the full lifecycle: operating-model analysis, NIT verification on B2B base, documentation maintenance, direct registration where required, and DGT correspondence — staffed by Contadores Públicos with active Costa Rican engagements. Free 30-minute Costa Rica IVA scoping callIndicative quote within 48 hoursCoverage includes Costa Rica + Central American Common Market + 80+ jurisdictions globallySingle English-language SOW; one invoice; one project manager |
Foreign E-commerce Seller into Costa Rica
Ship physical goods into Costa Rica from outside? You’re operating in the import-IVA channel. 13% IVA applies at Aduanas on customs value + Customs Duty (DAI) + applicable selective consumption tax on listed categories. The selling structure — your own platform, regional marketplaces (Mercado Libre regional presence, Amazon’s regional fulfilment), or direct-to-consumer — determines the IVA mechanics, not the rate.
Are you actually ‘selling into Costa Rica’?
Three structural models exist for selling physical goods to Costa Rican consumers from outside the country. First: classic cross-border drop-ship — you ship from a foreign warehouse, the Costa Rican buyer is importer of record, 13% import IVA applies at Aduanas on customs value + DAI + selective tax. Second: local stock model — you import goods in your own name into Costa Rica, become the registered importer, charge Costa Rican 13% IVA on local sales, recover import IVA as credit. Third: marketplace-mediated — regional marketplaces operate under their own platform-tax assumptions; verify with the marketplace’s commercial team.
Where IVA actually bites
Import IVA at the border is the primary entry point. The customs value (CIF basis), plus DAI at the applicable tariff line under the CACM framework, plus selective consumption tax on listed categories, forms the base for the 13% import IVA.
Customs valuation and the Aduanas process
Costa Rican Aduanas applies WTO valuation rules. Pricing must reflect arm’s-length terms; significant discounts on the declared value invite audit. Costa Rica is a full member of the Central American Common Market (CACM, alongside Guatemala, El Salvador, Honduras, Nicaragua) — preferential rates apply to qualifying intra-CACM trade. CAFTA-DR (Central America Free Trade Agreement with the United States and Dominican Republic) and Costa Rica’s EU and Asian FTA network add further preferential routings.
Costa Rican Zonas Francas regime
Costa Rica’s Zonas Francas regime is operationally significant — host to major multinational operations across medical devices, services, and technology (the regime is regulated under Ley 7210 and successive amendments). Within-zone activity benefits from specific IVA, customs, and income-tax treatment under qualifying conditions. Setup requires structural commitment — operational footprint, qualifying activity, and ongoing compliance with PROCOMER (Promotora de Comercio Exterior) oversight.
What this actually costs
- Customs broker (Agente Aduanero) per shipment: USD 300–1,000.
- Customs duty (DAI): 0–15% on most categories under CACM tariff schedule.
- Selective consumption tax on listed categories: variable rates by product.
- Import IVA: 13% on customs value + DAI + selective tax.
- Local fulfilment partner setup: USD 12,000–35,000.
- Zonas Francas setup (if used): USD 40,000–150,000 initial + USD 25,000–80,000 annual.
What we see foreign e-commerce sellers get wrong
Three patterns recur.
The first: under-declaring customs value — Costa Rican Aduanas has audit capacity and reassessment authority.
The second: ignoring CACM and FTA origin preferences — Costa Rica’s free-trade network is one of the most extensive in LatAm and materially reduces DAI on qualifying flows.
The third: misreading the Zonas Francas analysis — the regime is structurally powerful but only fits operations meeting qualifying-activity criteria.
Foreign Importer / Physical Goods Seller into Costa Rica
Importing into Costa Rica for distribution, manufacturing, or onward sale? You’re in a B2B-physical channel that overlaps significantly with the e-commerce track on import mechanics, but the structural questions differ — registered Costa Rican entity vs cross-border supply, Zonas Francas optionality, and integration with CACM and FTA preferences.
The structural choice
Three models predominate. First: register a Costa Rican entity as importer of record — Sociedad Anónima (SA) or Sociedad de Responsabilidad Limitada (SRL), obtain NIT, import in own name, recover import IVA as credit against domestic IVA on onward sales. Second: cross-border supply with Costa Rican buyer as importer of record — your invoices remain foreign, the Costa Rican buyer assumes import IVA at Aduanas. Third: Zonas Francas-based operation under Ley 7210 — strongest structural benefits but requires qualifying activity.
CACM and FTA preferences
Costa Rica is a full CACM member and operates an extensive FTA network: CAFTA-DR (US, Dominican Republic), Costa Rica-EU, Costa Rica-Korea, Costa Rica-Singapore, and others. Origin certificates under each framework reduce DAI on qualifying flows. Documentation discipline matters — Aduanas audits origin claims and reassessment exposure is real.
Zonas Francas regime — operational considerations
Ley 7210 governs Costa Rica’s Free Trade Zones, administered by PROCOMER. Qualifying activities include manufacturing for export, services (BPO, KPO, contact centres, shared services), and selected commercial activities. Within-zone operations benefit from specific IVA treatment (0% on qualifying inputs and supplies), customs treatment, and income-tax holidays under defined conditions. The compliance overlay — PROCOMER reporting, qualifying-activity discipline, employment commitments — is non-trivial.
What this actually costs
- Costa Rican SA / SRL setup: USD 4,500–14,000.
- NIT registration and Sistema de Facturación Electrónica configuration: USD 1,800–5,500.
- Customs broker retainer: USD 4,000–16,000 per year.
- Monthly IVA compliance: USD 1,500–4,500 per month.
- Zonas Francas setup (if used): USD 40,000–150,000 initial + USD 25,000–80,000 annual.
What we see foreign importers get wrong
Three patterns recur.
The first: under-using FTA preferences — Costa Rica’s network is one of the most extensive in the region and materially reduces DAI on qualifying flows.
The second: misjudging Zonas Francas economics — the regime is structurally powerful for qualifying activity but represents real overhead for marginal-fit operations.
The third: getting Sistema de Facturación Electrónica configuration wrong — Costa Rica’s e-invoicing has been mandatory since 2018; non-compliance triggers operational disruption fast.
Local Costa Rican Business
Costa Rican resident business? All taxable activity is in scope from commencement under the Régimen General. The Régimen de Tributación Simplificada (RTS) applies to small traders under specific turnover and capital thresholds. For most commercial-scale operations the Régimen General applies, with monthly IVA (Formulario D-104) and mandatory Sistema de Facturación Electrónica.
Choosing the right regime
RTS applies to small traders meeting specific turnover, capital, and activity-type thresholds — quarterly simplified declaration, no IVA mechanics. Régimen General applies to all other taxpayers — monthly IVA (Formulario D-104), ISR annual return, and Sistema de Facturación Electrónica compliance.
Monthly compliance rhythm
Régimen General taxpayers submit Formulario D-104 (IVA) monthly through the Administración Tributaria Virtual (ATV) by the 15th of the month following the tax period. Late filing triggers scaled fines based on salario base; late payment triggers interest at DGT-published rate (~12% annual).
Sistema de Facturación Electrónica
Mandatory for all Régimen General IVA taxpayers since 2018. Comprobantes Electrónicos issued through DGT-approved channels with XML structure and real-time validation by DGT. Failure to issue compliant e-invoices triggers operational disruption (cannot legally sell) and fine exposure.
Annual ISR return
Corporate income tax under progressive brackets — large taxpayers at 30% on net profit, lower brackets for smaller taxpayers. Annual return filed by 15 March of the year following the fiscal year (calendar-year basis for most taxpayers; special periods available).
What we see Costa Rican businesses get wrong
Three patterns recur.
The first: not exiting RTS at the right time — once thresholds are exceeded, continued operation under RTS creates retrospective exposure.
The second: under-investing in Sistema de Facturación Electrónica configuration — non-compliance triggers operational disruption fast.
The third: misapplying the reduced rates (4%, 2%, 1%) — sectoral and product-category specifics matter; getting the rate wrong on health, education, or canasta básica supplies creates exposure.
Cross-track essentials
Penalty exposure table
Costa Rica’s penalty framework under Ley 4755 (Código de Normas y Procedimientos Tributarios) calculates fines in salario base units (current base salary unit) or colones-denominated fixed amounts. Common categories:
- Late filing — typically half a salario base per omitted return.
- Late payment — interest at DGT-published rate (~12% annual) plus surcharge depending on circumstances.
- Material under-reporting (inexactitud) — 50–150% of underpaid IVA.
- Fraudulent under-reporting (defraudación) — criminal prosecution with imprisonment exposure under Article 92 of the Código.
- Failure to issue compliant electronic invoice — specific fine per occurrence plus operational disruption (cannot legally complete sale without valid e-invoice).
Audit triggers
DGT deploys risk-based selection. Common triggers: IVA credit positions persisting over several periods, customs-import value variances vs declared resale price, sector-benchmark variance on margins, large transactions with non-resident affiliates, mismatch between IVA and ISR bases, repeated late filing.
Records retention
Costa Rica requires 5 years of records from the date of the relevant filing. Records must be available to DGT on request. Electronic format under Sistema de Facturación Electrónica counts as primary record.
Currency and translation
The Colón is freely convertible under Costa Rica’s managed-float framework. Pricing in foreign currency for B2B contracts is common; invoices must show colones equivalent for IVA calculations. Currency translation rules under DGT guidance use the official BCCR (Banco Central de Costa Rica) reference rate at the date of transaction.
Frequently Asked Questions
Is Costa Rica’s IVA really 13% — or does the canasta básica reduce it?
13% is the standard rate. Reduced rates apply for specific listed categories: 4% (private health, private education above set thresholds), 2% (medicines, private health insurance premiums), 1% (canasta básica basic food basket, certain agricultural inputs and machinery). Sectoral specifics matter — verify rate per supply.
Do I need to register directly with DGT if I sell SaaS from outside?
In most cases, no — the platform-tax / intermediary-withholding model under Resolución DGT-R-13-2020 captures the transactions at the credit-card and payment-processor level. Verify your operating model with a Costa Rican tax advisor; direct registration may be required in specific scenarios.
What is the Zonas Francas regime and is it right for me?
Costa Rica’s Zonas Francas under Ley 7210 — administered by PROCOMER — offer specific IVA, customs, and income-tax treatment for qualifying activities (manufacturing for export, BPO/KPO services, selected commercial activity). The regime is structurally powerful for qualifying operations but requires real operational commitment. Analyse landed economics before committing.
How does Sistema de Facturación Electrónica work?
Mandatory since 2018 for all Régimen General IVA taxpayers. Comprobantes Electrónicos (facturas, tiquetes, notas de crédito/débito) issued through DGT-approved channels with XML structure and real-time validation. Non-compliance triggers operational disruption — sales cannot complete without valid e-invoice.
What’s the ISR corporate income tax rate?
Progressive brackets — large taxpayers at 30%, lower brackets for smaller taxpayers based on gross income. Annual return filed by 15 March of the year following the fiscal year.
How do CAFTA-DR and other FTAs interact with import IVA?
FTAs reduce DAI on qualifying-origin goods, which reduces the base on which 13% import IVA is calculated. CAFTA-DR (US, DR), Costa Rica-EU, Costa Rica-Korea, Costa Rica-Singapore, and the CACM framework all add origin-preference layers. Documentation discipline at Aduanas matters.
What records must I keep and for how long?
5 years from the date of the relevant tax filing. Records must be available to DGT on request. Electronic format under Sistema de Facturación Electrónica counts as primary record.
Where do I check current DGT guidance?
Ministerio de Hacienda’s portal at hacienda.go.cr — DGT Resolutions section publishes current administrative guidance. Engage a Costa Rican Contador Público Autorizado for material decisions.
Recent and upcoming changes
Costa Rica’s IVA framework has been operationally stable since the 1 July 2019 transition from IGV to IVA under Ley 9635. The structural themes since 2019 have been: foreign digital services framework (Resolución DGT-R-13-2020, effective October 2020); progressive refinement of the platform-tax / intermediary-withholding model; continued enforcement of Sistema de Facturación Electrónica.
2025 — Continued e-invoicing enforcement and platform-tax refinements
DGT continued enforcement actions on Sistema de Facturación Electrónica non-compliance and published further guidance on the platform-tax model for cross-border digital services.
2024 — Sectoral guidance updates
DGT published sectoral guidance on application of the reduced rates (4%, 2%, 1%) and Zonas Francas IVA treatment refinements.
Ongoing — FTA network and CACM integration
Costa Rica continues to operate one of the most extensive FTA networks in LatAm. The CACM customs union framework remains the operational backbone for intra-Central American trade.
Primary sources & further reading
- Ministerio de Hacienda — DGT — primary tax authority portal; Resolutions, ATV portal access, e-invoicing guidance
- Dirección General de Aduanas — customs authority; tariff lookup, import procedures, origin certification
- PROCOMER — Zonas Francas regulator; qualifying activity, application process, ongoing reporting
- Ley 9635 (Ley de Fortalecimiento de las Finanzas Públicas) — IVA statutory framework
- Ley 4755 — Código de Normas y Procedimientos Tributarios (procedural framework, penalties, defraudación)
- Ley 7210 — Régimen de Zonas Francas
- Resolución DGT-R-13-2020 — foreign digital services framework
- CAFTA-DR text and origin rules — US, Dominican Republic, Central America free trade framework
- SIECA — Central American Common Market Secretariat
Disclaimer
This guide is published by TaxDo as part of the Global Tax Hub. It is general commentary on Costa Rican indirect tax (IVA, selective consumption tax) at the date shown and is not legal, tax, or accounting advice for any specific transaction or business. Costa Rica’s IVA framework has operated since 1 July 2019 under Ley 9635, with the cross-border digital services platform-tax model under Resolución DGT-R-13-2020 (effective October 2020). Statute, regulation, and DGT administrative guidance change; rates, thresholds, sectoral reduced rates, and operational deadlines should be verified against current Costa Rican sources before any decision is made. Engage a Costa Rican Contador Público Autorizado or tax advisor for transaction-specific analysis. TaxDo accepts no liability for action taken in reliance on this guide.