Value-added tax will be incorporated in fiscal reform of Costa Rica
In Costa Rica, the fiscal reform will include the implementation of a value-added tax (VAT), which is basically an extension of the existing Sales Tax.
The Value added tax (VAT) is similar to a sales tax. It is a tax on the estimated market value added to a product or material at each stage of its manufacture or distribution, ultimately passed on to the consumer; it is a is a generic consumption tax on the sale of all goods and services.
The sales tax is a consumption tax charged at the point of purchase for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale.
The debate will focus on what level will VAT will be set at.
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