How vat / sales tax works in Costa Rica
Costa Rican VAT defaults to 13% on goods and services under Law 6826 as reformed, with 4% on health and education, 2% on medicines, and 1% on basic basket goods.
Traders charge output tax, deduct input tax, and file monthly electronic returns with comprobante invoicing validating every transaction.
Exports zero-rate, free-zone operations follow special regimes, and cross-border digital services face collection rules.
Tax rates at a glance
- Standard VAT
- 13%
- Reduced VAT
- 4% / 2% / 1%
- Basic basket
- 1%
- Exports
- 0%
- Free-zone flows
- Special regime
- Filing rhythm
- Monthly
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
E-commerce sellersManufacturersFreelancersExpatsCross-border traders
Watch out for
- Three reduced bands plus exemptions punish single-rate invoicing: health at 4%, medicines at 2%, and basket goods at 1% coexist.
- Free-zone regimes redirect VAT treatment for qualifying operations, so zone status must be confirmed before pricing flows.
- Comprobante validity conditions deny credits on formal defects, making issuance discipline part of every sale.
- Territorial income rules interact with VAT registration where foreign sellers test local presence.
Frequently asked questions
What is the VAT rate in Costa Rica?
Costa Rica applies 13% standard VAT in 2026, with 4%, 2%, and 1% reduced bands for health, education, medicines, and basic goods.
How often are Costa Rican VAT returns filed?
Monthly through electronic returns backed by comprobante invoicing, with input credits conditioned on valid issuance.
Do free zones change VAT treatment?
Yes for qualifying operations under zone regimes, with status, activity scope, and documentation deciding treatment per flow.