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.

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