Tax Review of Basic Food Products

Costa Rica's government has amended a decree issued last week which levies with a tax of 13% products like wheat flour bread, milk and packaged beans .

Tuesday, May 8, 2012

Besides the aforementioned products, others that remain exempt from the 13% Sales Tax (IV in Spanish) include tinned tuna, with or without vegetables, sausages packed in sealed plastic, and cheese packaged in sealed plastic without any degree of maturation.

The change in the government decision comes after complaints from employers, who claimed that the Ministry of Finance’s new taxable food basket, excluded popular consumer products, reported

Although the Finance Minister Edgar Ayales acknowledged the errors and the the decree was modified, doubts persist among employers:

"We are still reviewing because there are things that are not clear (...) A case in point is the popular steak, which the decree states is the discretion of the tax administration, so for some 'popular' chains this could be one thing or another," said Christian Morales, commercial manager of GESA (owner of Perimercados).

More on this topic

Costa Rica: Tax Exemptions for Food

August 2016

The food industry is opposed to the executive decree which eliminates the exemption from payment of sales tax on some food products.

From a statement issued by the Costa Rican Chamber of Food Industry (CACIA):

The CACIA sent a note to the Finance Minister protesting against the publication in July this year, of Executive Decree 39732-H, which introduces changes to the regulations to the law on sales tax. It eliminates the definition of "canned" or "packaged" food which in the previous Decree referred to products which were canned or packaged in glass products. This change can affect exemptions applied to some products such as cheese, coffee, sausages, some seafood and corn.

New Tax Law in Effect in Honduras

January 2014

The recently published new legislation establishes an increase of 12% to 15% in sales tax.

The Law on Ordering Public Finance, Control of Exemptions and Antievasion Measures includes 72 foods which had been excluded from payment of Sales Tax (ISV by its initials in Spanish) among which are ribs of beef, pork, chicken, natural cows milk, pasteurized milk, whole milk powder, butter and others.

New List of Products Exempt from VAT

May 2012

In Costa Rica, the Ministry of Finance has published a new list of products exempt from the basic VAT of 13%.

The Ministry of Finance has decided to include in the list of exemptions meats such as steaks, ground beef, sirloin tip, brisket, liver and tongue, and others.

Also exempted is honey, fish, other than those consumed by higher income sectors, such as tuna filets, cod and salmon, reported

Tax Exemption Ends for 90 Products

May 2012

Due to the government’s need to increase tax revenue in Costa Rica several types of meat and fruit will incur sales tax of 13% from Monday .

Among the types of products that will be taxed from now on with 13% sales tax are beef and pork loins, beef tenderloin and pork t-bone, Delmonico, sirloin, salmon, rice paella, risotto, shrimp, lobster, oysters, kiwi, plums, prunes, cherries and peaches, reports

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