Tax rate by region Costa Rica

Select region

The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

Understanding SaaS Taxation in Costa Rica

Costa Rica implemented a Value-Added Tax (VAT) system in 2019, replacing the previous sales tax. This reform aimed to simplify the tax structure and improve compliance. The standard VAT rate in Costa Rica is 13%, which applies to most goods and services, including Software as a Service (SaaS). There are no specific exemptions for digital goods or services under Costa Rican VAT regulations, which means that SaaS sales are generally subject to the standard 13% VAT rate.

Mosaic image

Costa Rica

Costa Rica implemented a VAT system in 2019, aiming to simplify the tax structure and improve compliance.

Official government link: Ministerio de Hacienda

13.00%

E-products and services VAT/Sales tax rate

Reduced tax rate product categories

Some educational material might be zero-rated

Exempted product categories

Costa Rica does not have specific exemptions for digital goods and services under its VAT regulations. Certain educational services may receive different treatment under other laws, but generally, digital sales are taxable.

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

Before commencing any taxable activity

Online registration possible

Yes

Local representative needed

No

Registration procedure

Foreign companies that provide or intermediate digital services or goods are required to register as taxpayers with the Costa Rican Tax Administration. It’s mandatory for these entities to join the taxpayer registry of the Tax Administration. If any individual or legal entity fails to initiate the registration process, the Tax Administration will automatically register them.

List of digital and electronic services liable for tax

The acquisition of digital content, such as downloads of music, e-books, videos, apps, and games, is a significant aspect. Content delivery by subscription, including news, music, and online games, is also included. The provision of software and maintenance services, such as anti-virus software and digital data storage, is essential. E-commerce services, digital advertising services, streaming services (music and video), software subscriptions, and online education platforms are all integral components of this digital ecosystem.

Penalties

If the declaration is submitted late, a penalty equal to 50% of the minimum monthly wage is imposed. Additionally, for late payments, a monthly fine of 1% of the due amount is charged, but the total fine will not exceed 20% of the total due amount.

Registration threshold

No threshold, non-resident companies must register for VAT

Filing interval

Monthly

Filing deadline

VAT returns must be submitted and paid within the 15 days of the following month

E-invoicing requirements

Yes

How-To Guides: Costa Rica SaaS VAT

Step: 1 Threshold

No VAT/GST registration threshold for foreign digital service providers — registration expected upon first taxable activity (i.e., sales of digital services consumed in Costa Rica) (no minimal turnover threshold). Registration is effectively mandatory for SaaS suppliers who wish to collect VAT directly; otherwise tax may be withheld by financial intermediaries on their behalf.

 

Step: 2 Business Registration

Register with Costa Rica’s tax authority (Ministerio de Hacienda – Dirección General de Tributación, DGT). Foreign entities can apply for VAT taxpayer status voluntarily by contacting the tax authority (e.g., via the official registration channels/email).

Step: 3 TIN/VAT Number

VAT number (“Número de Contribuyente/IVA taxpayer registration”) issued by Ministerio de Hacienda’s DGT upon registration. Foreign providers become registered VAT taxpayers for digital services.

Step: 1 Standard VAT Rate

Standard VAT rate is 13% on taxable supplies including digital services/electronic services.

Step: 2 Determine if you need to register.

To calculate your tax amount, use the following formula: 

 

Tax = Net Price ×  13%

 

Step: 3 Reverse Charge (B2B)

For cross-border SaaS/B2B, local VAT-registered business customers may account for VAT under domestic reverse charge rules if foreign supplier hasn’t registered; the local recipient accounts for output and input VAT in its VAT return (subject to domestic rules). There is no separate special digital services tax outside general VAT.

Step: 1 Selling B2C

Foreign SaaS sales to private consumers in Costa Rica are taxable at 13%. If the provider is not registered, VAT is typically withheld and remitted by credit/debit card issuers or financial intermediaries on the supplier’s behalf under Costa Rica’s digital services regime.

Step: 2 Selling B2B

If the buyer is a VAT-registered business, generally the reverse charge applies when the supplier is non-resident and not registered — the local business self-accounts for VAT; if the supplier is registered, the supplier collects VAT.

Step: 3 Invoice Requirements

Valid tax invoices must include:

  • Supplier name
  • Supplier VAT registration number
  • Sequential invoice number
  • Buyer identification (name, address, VAT ID for B2B) (specific requirements for digital service invoices per DGT e-invoicing rules). Electronic invoice/voucher requirements apply per Costa Rica’s VAT invoice regime.

Step: 1 Filing Interval

Monthly VAT returns.

Step: 2 Filing Deadline

VAT return and payment due by the 15th day of the month following the reporting period (next month).

Step: 3 Submission

Filed through Costa Rica’s tax portal (Administración Tributaria Virtual – ATV) with payment in CRC or optionally USD; foreign providers may coordinate filings directly or via local representative/contact (though fiscal representative is not required).

Step: 4 Record Keeping

Retain VAT and transaction records for at least 5 years; documentation must be available upon request, and foreign providers may retain records abroad if accessible.

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Costa Rica’s VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

Overwhelmed by SaaS sales tax compliance?

Our team of SaaS tax experts is here to help. Contact us today for a free consultation.

Talk to an Expert
Mosaic image
en_USEnglish
es_ESEspañol pt_PTPortuguês pt_BRPortuguês do Brasil fr_FRFrançais it_ITItaliano de_DEDeutsch nl_NLNederlands pl_PLPolski ro_RORomână ukУкраїнська zh_CN简体中文 ja日本語 ko_KR한국어 en_USEnglish