After inconsistencies were detected between purchases reported by taxpayers and sales that the company declared to the tax authority, an investigation was initiated in Guatemala into the "La Barata" supermarket chain.
During the morning of December 7, representatives of the Public Ministry (MP) and the Superintendence of Tax Administration (SAT), held a press conference in which they explained some details about a new case of alleged tax fraud by the chain of stores "La Barata."
Despite a severe economic crisis, Costa Rican authorities have approved the imposition of a 1% VAT on several foodstuffs in the basic food basket, and 4% on certain tourist activities and construction services.
Before the emergence of the pandemic, the Costa Rican economy was already in a difficult state, and the impact of the covid-19 outbreak ended up hitting it in the worst way, which is evident in the performance of productive activity.
In Costa Rica, the Ministry of Finance proposes to apply VAT to services such as Netflix, Airbnb, Tinder, Skype, PlayStation Network and advertising on social networks, among others.
According to a resolution of the Ministry of Finance that should be in consultation in the coming days, credit card issuers would be required to receive the 13% tax.
The list of digital services objects of the collection of VAT amounts to 190, as some are repeated, as companies use different names at the time of billing their customers.
The changes that had been made to the Regulation of the Value Added Tax Law in Guatemala came into effect.
This is Governmental Agreement 222-2019 modifying the Regulation of the Value Added Tax Law, which contains provisions regarding the mechanisms for the recovery of the tax credit to exporters created by Decree 4-2019, informed the exporters' union.
In Costa Rica, taxpayers interested in benefiting from exemptions or reduced rates of payment of Value Added Tax must register with the Directorate General of Taxation.
The changes were detailed on October 15, 2019, when the resolution of the General Directorate of Taxation (DGT) No. DGT-DGH-R-060-2019, entitled "Procedure for requesting registration, special orders for the authorization of exemption or reduced rate of Value Added Tax (VAT)", was published in the Official Newspaper La Gaceta."
Since October 1, Costa Rican producers and suppliers in the agricultural and fishing sector have a special regime for declaring and paying VAT, which provides that coffee producers, sugarcane and beekeepers will make an annual declaration.
The new Special Agricultural Regime (REA) does not change fiscal obligations, but it allows them to be adapted to the particularities of production processes, so as to facilitate compliance, informed the authorities.
Until April 2 will be in public consultation in Costa Rica the regulations of the Value Added Tax Law, which incorporates the changes of the first proposal disclosed on January 29.
This is the second consultation carried out, since on January 29, 2019, the proposal for "Regulation of Title I of Law No. 9635 of December 3, 2018, denominated "Value Added Tax Law" (VAT) was made available to the public.
Regulations of the Value Added Tax Law in Costa Rica are in public consultation until February 4.
From the Ministry of Finance press release:
January 29, 2019. With the aim of achieving the greatest possible citizen participation in the implementation process of the Law to Strengthen Public Finances, from today, Tuesday, January 29 and until next Monday, February 4, the Ministry of Finance will have available to the public the proposed "Regulation of Title 1 of Law No. 9635 of December 3, 2018, called "Value Added Tax Law" (VAT).
The business sector welcomes the progress achieved with the tax reform approval in the first debate, but notes that it does not fully solve the financial problems facing the government.
In the debate last Friday, the representatives approved the file number 20.580, known as the tax reform law. The approval was optimistically received by the Costa Rican Union of Chambers and Associations of Private Business Sector (Uccaep).
Despite several announcements of new taxes, the government will focus on controlling tax evasion and leave the decision to implement a tax reform to future administrations.
According to authorities at the Ministry of Finance, at the moment there is no consensus for fiscal reform. The priority now will be to pursue and strengthen tax administration in order to meet budget expenditures this year.
The draft law on Tax Coalition will extend exemptions until March 2015 and maintain tax free income for international cooperation given to nonprofit organizations.
Some of the goods included in the list of exemptions are books, magazines, school supplies, medicines, vaccines, agricultural goods, rice (except packaged rice or packages equal to or less than fifty pounds and higher quality presentation than 80/20), sugar cane (except for special sugars), vegetable cooking oil, corn, and coffee grounds, among others.
Exemption from VAT and income tax for SMEs operating under the fixed quota regime will be retained in the Tax Act Coalition whose reform is being proposed by the Executive.
There are about 200,000 small and medium enterprises (SMEs) operating under the so-called fixed quota regime, contributing 40% to gross domestic product (GDP).
Bayardo Arce, advisor to the President for Economic Affairs, told Elnuevodiario.com.ni that "...
The amendment to the Law on Tax Coalition sent by the Executive to the Assembly repeals the exemption from VAT on domestic production of clothing and footwear.
If the reform is approved, SMEs in these sectors will be the most affected "... as it states that they must pay Value Added Tax (VAT) and also orders that they withhold income tax, through an unclear mechanism within the fixed quota system. "
In Costa Rica a new tax reform package includes an attempt to reduce state expenditures by 1% of GDP.
The Finance Minister Edgar Ayales, outlined to Elfinancierocr.com to the details of a new attempt to correct the deficiencies of the Costa Rican tax system, while curing the problems in public finances.
Ayales justifies the need for the approval of this tax reform, saying that "The short-term contingency measures that have alleviated the fiscal deficit have all been used up.”