By digital services cross-border will be understood, all those who provides a provider who is not domiciled in the country by means of the Internet or any other digital platform, which are consumed in the national territory.
Such provision will also be applied to the acquisition of intangible assets made by end consumers or taxpayers of the VAT to a supplier domiciled outside of Costa Rica, and that are going to be used or consumed in the country.
The collection of the tax will be made directly by the provider of the service or through issuers of debit or credit cards.
In terms of the collection of the tax, made by the issuers of debit or credit cards, these are applied on the transactions made by the cardholder with the providers of digital services identified in the list communicated by the Directorate General of Taxation. According to the Ministry of Finance, such a list will be available on the page www.hacienda.go.cr and will be updated at least every six months; in order to include new providers or to exclude those who have registered voluntarily as taxpayers.
In addition, the resolution states, the tax obligations that must be met by providers of digital services registered with the Tax Administration and the issuers of credit or debit cards; as well as the details of the forms to be used for the calculation and payment of the tax, as well as for the provision of information of significance to a tax.
The director general of Taxation, Priscilla Zamora Rojas, explained that “the resolution relating to the payment and collection of VAT on digital services cross-border seeks to establish in detail the guidelines to be followed and the formal duties and materials that must fulfill the suppliers of this type of services, as well as issuers of debit cards or credit to which the Law of Value Added Tax established as responsible for the collection of this tax.”
“This resolution sets a specific date from which to apply VAT on digital services cross-border, which was established following the recommendations of the OECD to address the challenges of taxing the digital economy,” added Zamora. In addition to this, the Ministry of Finance released the first list of providers of digital services cross-border to which it will apply the 13% tax of the value added from 01 August.
LIST OF SUPPLIERS OF DIGITAL SERVICES CROSS-BORDER TO WHICH IT WILL BE APPLIED THE VAT TO 13% FROM 1 AUGUST
Finance will update this list every six months.
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