Costa Rica’s Taxman Faces A Challenge With Foreigners With Foreign Payment Options

Rico’s TICO BULL – The current government, as its three predecessors, is intent on introducing sweeping tax reforms that include the introduction of a Value Added Tax (VAT) or Impuesto al Valor Agregado (IVA) in Spanish, that proposes to tax many items not taxed under the simple Impuesto de Ventas (IV) or Sales Tax currently applied to consumer purchases.
Sit bakc, enjoy, mostly like the IVA, if and when it is implemented, won’t apply to your Netflix if you don’t make payment using Costa Rica plastic.
One of the items that would be taxed IF and when the IVA is approved and goes into effect is Netflix.
That is, for the current monthly Netflix of $10.99 (¢6,300 colones), the cost would be US$12.41 with the 13% tax, if payment

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