E-Commerce: Tax Exemptions in Costa Rica
Tuesday, March 23, 2021
Once Cauca IV comes into force, Costa Rican consumers will be exempted from paying duties on Internet purchases made abroad by Costa Rican consumers that do not exceed $500.
The fourth version of the Central American Uniform Customs Code (Cauca IV) will take effect as of May 1 and according to Costa Rican authorities, the exoneration of duties will only apply to family shipments.

See "E-Commerce: Trends at the Beginning of 2021"

While the exemption already applies today, there are many limitations, as consumers who buy online and bring their products through courier companies, can only apply to the elimination of tariffs once every six months.

Gerardo Bolanos, general director of Customs, told Elobservador.cr that "... 'the current application is via a criterion that makes an interpretation, in my opinion, not so extensive and that is what is being applied. With Cauca IV, it is defined which are the goods that are exempt from payment and are family shipments."

Also see "How do Purchasing Intentions Evolve?"

Specialists predict that this exoneration may lend itself to dumping practices, because although the amount established seems insignificant, local illicit trade has found ways to circumvent the rules, such as using several people to exempt themselves from paying taxes.

Bolanos believes that this new measure could encourage Dumping. The director of Customs explained that "... 'It is not possible that, in the framework of the economic reactivation, you buy a shoe, exempt from taxes, and not in a store that pays taxes, to its employees, electricity. Dumping? Absolutely."

Source: elobservadorcr.com
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Source: elobservadorcr.com
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Key entities
Customs General Direction (Costa Rica)
Costa Rica
E-commerce Taxes
online business
online shopping
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