With effect from 1 July 2020 until 30 June 2021, a reduced 4% VAT rate will apply on engineering, architecture, and construction services for registered civil works in Costa Rica. As part of Costa Rica's transition to the new VAT regime from 1 July 2019, such services have been VAT exempt. For the reduced rate to apply, however, the civil works should have been approved by 30 September 2019.

Note - As per the implementing regulations for Costa Rica's VAT regime, the rate for such services will be subject to an 8% VAT rate from 1 July 2021 to 30 June 2022, and from 1 July 2022, will be subject to the standard 13% VAT rate.