Why something bought abroad is taxed
Because the law does not look at where the seller is, but at where the service is consumed. The VAT Act places digital, telecommunications, radio and television services in Costa Rican territory — regardless of the medium or technological platform — when they are provided here. A cloud subscription used by a company in San José is consumed in Costa Rica. That the supplier is in Ireland or Delaware changes nothing.
If you are a taxpayer: the reverse charge
On the purchase of services or intangible goods whose supplier is not domiciled in the territory of the Republic, the taxpayer shall be the recipient of the service or intangible, regardless of where it is being performed, provided they are themselves a taxpayer for this tax.
Value Added Tax Act, article 4In practice: you charge yourself the VAT. You declare it as tax due and, in the same return, take it as a credit if the expense relates to your taxable activity. The cash effect is zero when the credit is full. But it has to be declared, and omitting it is an omission of output tax, not a formality.
- Foreign supplier's invoice
- US$ 500
- Exchange rate on the date
- ₡520
- Taxable base
- ₡260,000
- VAT self-assessed (13 %)
- ₡33,800
- Input credit (fully taxable activity)
- ₡33,800
- Net effect on the return
- ₡0
If you are a final consumer: the card charges it
For someone not registered, the law provided a different mechanism. The tax authority can collect the tax through the suppliers and intermediaries, and credit and debit card issuers act as collection agents. That is why two lines appear on the statement: the platform's charge and, separately, the 13 % the bank collected.
The list of included providers is maintained by the tax authority and updated periodically — Booking.com, among others, was added with effect from 8 September 2026.
| Situation | Who settles the VAT | Creditable? |
|---|---|---|
| Taxpayer buys from a non-domiciled supplier | The taxpayer (article 4) | Yes, in the proportion of the activity |
| Final consumer pays by card | The card issuer (article 30) | No |
| Foreign supplier registered with the tax authority | The supplier charges it on their invoice | According to the document they issue |
The real problem: double charging
A registered company pays a subscription with the corporate card. The bank collects the 13 %, because the bank cannot tell who the holder is. And the company, under article 4, also has to self-assess 13 %. The same service with the tax paid twice.
-
Check the statement before building the return
Identify whether the issuer already collected the tax on that charge. The collection appears as a separate line, not inside the platform's amount.
-
Document the period's consumption
With the supplier's invoice or receipt, the statement, and the exchange rate on the date. That trio supports both the credit and any later claim.
-
Prefer a payment method that does not trigger collection
Where possible — a transfer, or a supplier registered with the tax authority who charges the tax directly — the circuit stays clean and there are not two charges to reconcile.
The law does provide a refund, but for other situations: article 30 lets the cardholder claim back tax collected when the service was used and consumed entirely in another jurisdiction, or when the card was used to send money abroad. The overlap with the reverse charge is a different case, and its treatment is worth checking with your adviser before filing.
The other direction: you sell to a client abroad
Services provided to non-domiciled persons, whose use and consumption happens outside the territory, are export of services and exempt. You do not charge the 13 %, but the transaction is still invoiced electronically and declared as an exempt sale — and it keeps your input credit. How that works.
If you rent out short-term
This is the mechanism behind the platform commissions. Airbnb is registered here, so it charges the VAT on its fee and you credit it; Booking is not, so you self-assess. Both end up in the same return. The detail.
The output and the credit, together every month
The self-assessed VAT on a foreign service goes into the return as both sides at once, so neither gets forgotten.
See how it worksAbout this article. The reverse charge is article 4 of the VAT Act, quoted above; the card issuer as collection agent and the refund cases, its article 30; the list of included providers is maintained by the tax authority and changes.
Verified as of 24 September 2026. Tax rules change. This is information, not tax advice.
Sources: Current legal texts (Sinalevi) Ministry of Finance