Costa Rica VAT Registrations Explained
Updated 3 months ago
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Costa Rica has two VAT registration schemes, each designed for a different type of business. Knowing which one applies to you is the first step to getting compliant.
Registration Scheme Comparison
Standard VAT Registration | Simplified Registration | |
|---|---|---|
Who is it for? | Resident businesses and non-residents with physical presence in Costa Rica | Non-resident providers of digital or electronic services to non-VAT-registered Costa Rican customers |
Sales threshold | None (registration required from first taxable supply) | None (registration required from first taxable supply) |
Temporary registration option | No | No |
Voluntary registration | Not applicable (threshold is zero) | Not applicable (threshold is zero) |
Fiscal representative required? | Not applicable | No |
Foreign currency exchange rate | Not applicable | Use the Central Bank of Costa Rica (BCCR) exchange rate on the date of supply |
When Does Tax Apply After Registration?
For both registration types, VAT must be applied starting from the very first taxable supply made to a Costa Rican customer or resident.
Intercompany Revenue
For resident businesses, intercompany transactions (between your own legal entities) do count toward taxable supplies if they constitute valid taxable transactions under Costa Rican law.
Credit Notes and Sales Returns
Credit notes and sales returns may be deducted when calculating your VAT position, for both registration types.
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