Conflict Resurges Over Tourism Tax

Protests have been made in Costa Rica over the Treasury's intention to charge sales tax on services provided in recreation centers, contravening a ruling made by the Administrative Court in 2015.

Friday, February 3, 2017

The National Chamber of Tourism said that three companies in La Fortuna de San Carlos received notification from the Directorate General of Taxation which indicated that they were required to pay sales tax of 13% on recreational services offered to tourists.

See "Costa Rica: Exemptions for Tourism Activities"

Carlos Vargas, General Director of Taxation, told that "... the new document dated October 2016, establishes each specific case must be analyzed to determine whether the recreation center has services that are subject to the payment of taxes. Vargas said that the document "is not reviving' the collection of 13% sales tax on recreation centers as proposed in 2014. On the contrary, it aims to analyze each case to determine if the tax can be applied or not."

"... The document, held by La Nacion, explains that services that are provided outside of a special limit of the establishment or recreation ground such as zoos, spas, canopy tours, hiking trails, bird watching, bungee jumping, among others; should be subject to the payment of sales tax."

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