VAT (IVA) Registration in Costa Rica

Starting a business in Costa Rica implies completing several steps, and one of the most important is VAT registration. The procedure is connected to the value added tax (VAT), which is one of the largest contributions to the country’s Gross Domestic Product. Fortunately, the process is the same for both local and foreign companies with operations here. Find out below how to register for VAT in Costa Rica. Our company formation specialists are at your service with complete support during the registration process. We can also help you with setting up a company here.

Quick Facts
VAT registration services availability (YES/NO)	Yes, through our accountants in Costa Rica
VAT filing services availability (YES/NO)	Yes
Standard VAT rate	13%
Reduced VAT rates	1%, 2%, and 4% reduced rates apply to certain goods and services.
Products/services exempt from VAT (if available)	Books and exported goods are exempt from VAT.
VAT registration threshold in Costa Rica	There is no specific registration threshold in Costa Rica.
Special VAT registration requirements for foreign companies (if any)	Foreign companies must register for VAT if they have a physical presence or local establishment.
Other registration requirements	Natural persons renting properties must also register for VAT in Costa Rica
Registration authority	Local tax administration
VAT number format in Costa Rica	The VAT is made up of a 9 to 10 numeric code, depending on the registrant (natural person or company).
Who collects the VAT	The service supplier/seller
VAT filing requirements	Monthly filings are required.
VAT documents storage requirements	VAT documents must be stored for at least 5 years.
VAT de-registration situations	Company relocation/de-registration
Local tax agent required (YES/NO)	No, however, one can be appointed.

VAT registration for foreign companies in Costa Rica in 2026

Foreign companies have two options to set up operations in Costa Rica: the branch office and the subsidiary. Between the two of them, the subsidiary is created as an independent entity, therefore, will be subject to the same process for VAT registration as local enterprises. So, we will focus next on how to obtain a Costa Rican VAT number of foreign businesses operating through branches.

Here are the main aspects to consider for VAT registration in Costa Rica as a foreign entity in 2026:

there is no minimum registration threshold, therefore, the branch must obtain the VAT number right after being incorporated;
there is no need to appoint a tax agent when filing for VAT registration in Costa Rica, the procedure can be carried out by one of the directors;
in terms of documents, the tax agency will require an application form and details about the company.

The main aspect to consider when registering for VAT as a foreign entity is the requirement of having a legal address in Costa Rica, which can be obtained under the form of a virtual office in the beginning.

Even if without the requirement to appoint a fiscal representative, many foreign business owners decide to hire local accountants to handle the VAT registration in Costa Rica, as well as to represent them when filing VAT and tax returns.

Feel free to request our services if you need support with registering for VAT in Costa Rica in 2026. We are also at the service of foreign investors who want to move to Costa Rica to run their businesses from here.

VAT registration support for local companies in Costa Rica

Our Costa Rican company formation specialists are also at the service of local and foreign investors who want to open companies here in 2026 and must register them for VAT. The procedure is fairly simple and can be completed in just a few days.

In terms of documents to be drafted, these imply the standard application form issued by the Ministry of Finances and information about the company, such as the name, legal address and business identification number.

No VAT registration thresholds

There is no VAT registration threshold in Costa Rica, however, businesses that provide services, sell goods, or engage in trading activities are required to register for this tax.

Registration depends on taxable activities and turnover, which is why Costa Rica also has a simplified procedure for those carrying out the above-mentioned operations occasionally. This also applies to foreign companies with operations in Costa Rica and which must apply for VAT numbers if they have physical presence – permanent establishments in Costa Rica.

In the case of digital service providers, they can choose if they want to register for this tax or if they want to supply their information to the tax authorities for the VAT to be withheld.

VAT rates in Costa Rica

In Costa Rica, the general value added tax (VAT) rate is 13%. This rate is applicable to both goods and services, including imports. However, there are also reduced rates that apply in the following cases:

for foreign trips, the 4% rate applies on 10% of the air ticket price;
for domestic trips, the air ticket is subject to a 4% rate;
a 2% rate is applicable to both medications and the necessary equipment and raw materials needed to manufacture them.

Certain products that are part of the “Basic Taxable Basket”, like bread, milk, fruits, soft drinks, etc., are subject to a 1% rate. Supplies for agriculture, livestock, veterinary care, and non-sport fishing are also subject to the 1% tariff. Books and export items are subject to a 0% rate.

Format for Costa Rican VAT Numbers

The Tax Register, which identifies and categorizes taxpayers, is where individuals and businesses must apply for VAT numbers. However, Costa Rica does not have a unique Tax Identification Number. Depending on their position, taxpayers are identified in different ways. This means that:

for Costa Rican citizens, the VAT number consists of a sequence of nine numeric digits;
for residents, the residence card for foreigners, which has an 11 or 12-digit format, will be used as a VAT code;
for foreign nationals who do not reside in Costa Rica, a special tax identification number in the form of a 10-digit code will be available;
for companies, the 10-digit corporate ID number can be used as a VAT number;
for non-resident companies, a 10-digit special tax identification number will be issued.

VAT compliance in Costa Rica

At the level of 2026, the VAT compliance regulations remain the same for all companies, local or foreign, namely:

once making the first sale, a company must register for VAT in Costa Rica and collect the due tax;
the standard rate of the value added tax is 13%, with reduced rates of 1%, 2% and 4% for certain goods and services;
VAT returns must be filed on a monthly basis, more precisely by the 15^th of the current month for the previous one;
VAT-related documents must be stored by companies for a minimum period of 5 years.

If you need more information about VAT registration in Costa Rica in 2026, do not hesitate to get in touch with us. Our experts are at your disposal with various services among which support in obtaining a tax and VAT number and opening a company in Costa Rica. Additionally, if you are a foreign citizen who wants to immigrate to Costa Rica, we have a team of dedicated lawyers ready to assist in such matters.