VAT for Online Digital Services
Watching movies through Netflix just got more expensive, at least for people who are domiciled in Costa Rica and/or use a Costa Rican card to pay for these type of services.
Starting on August 1, the collection of 13% value added tax (VAT) for cross-border digital services will begin, in compliance with the provisions of the Value Added Tax Law.
People who use a foreign credit or debit card to pay for these services will not be affected by this policy. I do not foresee Facebook or Apple registering with the revenue service in Costa Rica for the purposes of collecting these taxes, which is the reason why the burden is placed on the card issuers in Costa Rica to collect the tax. Thus, people who use online services (such as the ones listed below) and use a foreign card (a card issued in the US, Canada, Europe, etc) will not be affected by this.