Costa Rica has just published a list of 191 digital service suppliers that will come under the scope of amended VAT rules on the cross-border supply of digital services. This move mirrors the approach in Argentina. 

As of December 2019, however, the rules remain in draft form and a public consultation is open until December 13, 2019. In the latest update the Costa Rica tax authority (Dirección General de Tributación (DGT)) released the list - in annex 6 here - of potentially affected digital platforms and digital service suppliers. 

In a move that mirrors the approach in Argentina this list of 191 businesses will show what foreign digital service suppliers are within the scope of these amended VAT rules in Costa Rica. The confirmed obligation for the collection of VAT (according to the original Decree 41.779  - only available in Spanish) is on domestic payment card issuers.

Foreign suppliers have been waiting for the publication of this list to understand if they are within the scope of Costa Rica's amended VAT rules before taking any necessary action.

The proposed VAT rule change was originally revealed back in July 2019 and this latest development is the third draft of these proposals. 

We will, of course, keep you updated on developments in Costa Rica and elsewhere.