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Costa Rica Updates List of Digital Service Companies Subject to VAT Withholding — Orbitax Tax News & Alerts

Costa Rica's Ministry of Finance issued a release on 2 June 2023 announcing the expansion of the list of companies (services) subject to the collection of VAT on payments for cross-border digital services. This includes the addition of 13 companies (services), as well as the removal of Airbnb because it voluntarily registered as a taxpayer, bringing the total to 148. Costa Rica introduced the collection of VAT at the rate of 13% on payments for cross-border digital services from 1 October 2020. The latest list as expanded is effective from 1 June 2023.