Costa Rica VAT / Sales Tax

Detailed vat / sales tax rates and rules for Costa Rica in 2026.

VAT / Sales TaxCRC

Costa Rica introduced a 13% value-added tax (IVA) in July 2019, replacing the previous 13% general sales tax. The new IVA expanded the tax base to include services, which were previously largely untaxed. Reduced rates apply to essential goods and services: 1% for basic food basket items, 2% for medicines, and 4% for private health services. Education, public health services, and exports are zero-rated. Financial services and residential rentals below a certain threshold are exempt. Monthly IVA returns are required.

Standard Rate

13%

Registration Threshold

All businesses performing taxable activities must register for IVA

Reduced Rates

4% — Private health services and insurance premiums2% — Essential medicines and pharmaceutical products1% — Basic food basket items (canasta básica)0% — Exports, education, public health services, residential rental (low-value)

How Costa Rica VAT / Sales Tax compares

Costa Rica’s standard VAT / sales tax rate of 13% is the 124th highest of 203 countries TaxAtlas tracks, below the global average of 13.7% and North America’s regional average of 10.4%.