VAT in Costa Rica: No Fines or Sanctions until October

The Legislative Assembly approved a moratorium of three non-extendable months, in sanctions, arrears, interests, fines or any other sanctioning disposition, related to the collection of the value added tax, which became effective last July 1.

Wednesday, July 3, 2019

Taxpayers qualified by the Tax Administration as large national taxpayers and large territorial companies are excluded from this moratorium, explains a statement from the Legislative Assembly.

You may be interested in "Costa Rican VAT Regulations Released”

The document indicates that the Tax Administration may not initiate any administrative procedure to impose sanctions for inconsistencies or inaccuracies derived from the declaration, liquidation, payment, application of tax credits or other differences in the determination or calculation of the value added tax during the months that the moratorium was in effect. However, the moratorium does not exempt the taxpayer from making the declaration, liquidation and payment of the value added tax.

"Congresswoman Laura Guido stated that she joins this initiative with the objective of being able to assume with greater confidence and knowledge of VAT, likewise people have to make their declaration but if it is determined that there are errors, they can have a gentle treatment so that no sanctions or delays are applied.

Walter Muñoz noted that the least that can be done is a moratorium, but not for a learning curve but for not continuing to close businesses, because he said that the VAT is regressive affecting the middle class in this country, "This government made a mistake when we put the VAT, the government has done absolutely nothing for customs tax evasion and we can no longer approve this moratorium, but raising the voice that VAT is harmful to Costa Rica," said Deputy Muñoz

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