Quick overview
| Standard Rate | Reduced Rate | Other Rates |
| 13% | 1%, 2%, 4% | 0%, Exempt |
The local name for VAT in Costa Rica is Value-added tax (VAT).
There are basically 4 VAT rates in Costa Rica:
- Standard VAT rate is 13%4%
- Reduced rates of 1%, 2%,
Recent developments
For more information about (recent) rate change developments in Costa Rica, please click HERE.
Standard rate: 13%
This rate applies for all transactions that take place in Costa Rica, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).
Reduced rate: 1%
- Goods from the basic consumption basket”
Reduced rate: 2%
- Medicines
- Private education services
- Personal insurance premiums
Reduced rate: 4%
- Private health services
- Local flight tickets
- Construction-related services
Exempt supplies, with out the right to deduct input VAT
- Veterinarian services, including livestock
- Electricity
- Books, musical compositions and paintings
- Re-importation of national goods
Zero rate (0%)
- Goods and services destined for exports, goods and services sold to a beneficiary of Free Trade Zone Regime (FTZR)
- Books
- Services rendered for cultural radio stations
- Private education services
A global VAT/GST rate overview can be found here (note this is a work in progress).
This post was last updated on October 31, 2021.
