Is there a free VAT/GST threshold for foreign digital sellers?

Tax applies without a foreign free threshold; foreign registration is voluntary

No. This page summarises official VAT/GST rules for foreign digital sellers. It is not tax or legal advice

Compendium · Americas · Costa Rica

Costa Rica: VAT on digital services

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Not supported by the free-threshold API · Local term: VAT

Last verified: 2026-10-29

Cross-border digital services used in Costa Rica are subject to 13% IVA. Default collection is via withholding/charge by local payment processors and similar intermediaries. Foreign providers may voluntarily register with Hacienda as IVA taxpayers to charge 13% directly: send interest note and sworn registration declaration (apostilled/legalised foreign documents + official translation) to Notificaciondgcn@hacienda.go.cr; Hacienda responds in ~10 business days and issues NITE

Not supported by the free-threshold API: why

No free-threshold support in the API; registration-from-first-sale or specialist regime

Spot a mistake in Costa Rica’s rules?

Open a public correction issue on Gitea (sign in or create an account). The form is prefilled with this page’s URL and a short template, and asks for the correction label. Accepted corrections become a reviewed diff on the rules dataset — rule fixes belong in botchannels-app, not a silent change on this site.

Threshold and rates (VAT)

Free threshold?: No — No free-threshold support in the API; registration-from-first-sale or specialist regime
Amount / measure: CRC 0
No free threshold for the tax itself — IVA applies to in-scope cross-border digital services; foreign registration is voluntary if you want to charge directly instead of relying on intermediary withholding
Window: No threshold (from the first sale)
Standard rate: 13.0%
IVA 13% on cross-border digital services
Who must register: Voluntary: foreign providers/intermediaries that elect to register with Hacienda to charge IVA directly. Otherwise tax is collected via local intermediaries
Evidence of location: Service used in Costa Rica. Fixed multi-evidence checklist: Not specified in official English guidance as of 2026-10-29
Invoicing: If voluntarily registered (NITE), charge 13% IVA directly. Otherwise expect intermediary withholding
Filing: If voluntarily registered, file/pay per Hacienda obligations for that registration. Exact digital-volunteer calendar: follow Hacienda after NITE issuance
Effective: Cross-border digital services IVA from 1 Aug 2020; TRIBU-CR / registration resolutions updated 2025
Authority: Ministerio de Hacienda — Dirección General de Tributación

What Botchannels returns

Ruleset version: 2026-10-22.v1
Decision summary: Botchannels does not open free-threshold sales here. Register (or appoint a representative) before selling.
Product class: Digital service
Support status: Not supported by the free-threshold API — No free-threshold support in the API; registration-from-first-sale or specialist regime

How to register

Self-register online?: No — Default path is intermediary withholding — no foreign registration required. Voluntary registration to charge IVA directly is by email to Notificaciondgcn@hacienda.go.cr (not a public self-service wizard)
Resident representative / fiscal agent: Not required for voluntary foreign registration; documents are filed with Dirección General de Tributación
Regime: Voluntary Hacienda registration for foreign cross-border digital-service providers (NITE); default path is Costa Rican payment-intermediary withholding at 13% IVA

Steps (in order)

Confirm cross-border digital services used in Costa Rica (13% IVA)
Default: tax collected via Costa Rican payment intermediaries — no foreign registration required — https://www.hacienda.go.cr/
Optional voluntary registration: email Notificaciondgcn@hacienda.go.cr with interest note, sworn registration declaration, contact data, tax-residence certificate and legal capacity evidence (apostille/legalisation + official translation)
Hacienda responds in about 10 business days; on approval receive NITE and confirm start of charging IVA directly

Documents

Interest note — Express interest in voluntary registration
Sworn registration declaration — As Hacienda resolution materials require
Tax residence certificate — From home-country tax authority
Legal capacity evidence — Apostille/legalisation + official Spanish translation

Official processing time: About 10 business days for Hacienda response to voluntary registration (resolution materials). Default intermediary path has no foreign-seller registration SLA
Official fees: No Hacienda registration fee summarised on materials reviewed; apostille, translation and adviser fees are commercial
Portal: https://www.hacienda.go.cr/
Local bank account: Not specified as mandatory in official English guidance as of 2026-10-29
Filing frequency: If voluntarily registered: per Hacienda schedule after NITE. Otherwise N/A (intermediary withholding)
Payment currency: CRC
Input VAT recovery: Not specified in official English guidance as of 2026-10-29; simplified digital regimes typically remit output tax only
Portal language: Spanish (official)
Penalties: Not specified in official English guidance as of 2026-10-29 for the voluntary path; Costa Rican tax procedure applies

Firms offering this service

Non-exhaustive. Not an endorsement. Links checked live on 2026-10-29; confirm current offerings, licences, and fees directly with each firm before engaging

KPMG Costa Rica — Member firm

Official sources

Hacienda — cross-border digital services materials
Presidencia — 13% IVA digital services from 1 Aug 2020

Last verified: 2026-10-29.

FAQ

Is there a free VAT/GST threshold for foreign digital sellers?: Tax applies without a foreign free threshold; foreign registration is voluntary
Is a local tax representative mandatory?: Not required
What rate applies?: 13% IVA
Is this tax advice?: No. This page summarises official VAT/GST rules for foreign digital sellers. It is not tax or legal advice