Travelers paying for overseas accommodation through certain booking platforms with Costa Rican credit or debit cards can face an automatic 13% VAT charge, even though the stay takes place outside Costa Rica. The Finance Ministry says those travelers can request their money back, but the refund requires a separate application. The clarification answers a question left open in our earlier coverage of the expanded digital-services tax list: what happens when someone uses a Costa Rican card to book a hotel abroad?
Vice Minister of Revenue VÃctor Carvajal said that reimbursement is available for accommodation consumed outside Costa Rica because the value-added tax applies to goods and services consumed within its territory. The automatic charge does not mean an overseas hotel stay has become subject to Costa Rican VAT.
Booking.com, Expedia and Agoda.com joined the updated collection list effective September 8. The change expanded the register from 161 providers and intermediaries to 181. Costa Rica has collected VAT on foreign digital services used in the country since October 2020. For residents planning trips abroad, the distinction matters at the time of payment. As an illustration, a $1,000 accommodation charge subject to the full 13% withholding would mean paying an additional $130 upfront, then applying to recover it.
Carvajal said that the collection mechanism cannot distinguish the destination beforehand. He said Hacienda wants platforms to register directly with the tax administration and collect the appropriate tax themselves, instead of relying on withholding through card payments. According to the explanation refund requests can be submitted through the Tribu-CR online system or in person at tax administration offices. Its report identifies form D-402 and a bank statement showing the withholding among the documents needed for the online application.
Tax specialist Alexander Salas, of PwC Costa Rica, said that reimbursement for foreign accommodation proceeds once the stay has taken place. Travelers should retain their booking records and bank statements to document the payment and the tax withheld. The clarification concerns payments made with Costa Rican cards. It should not be read as a blanket 13% surcharge on every tourist booking or every foreign-issued card. For affected residents, the near-term consequence is an additional upfront payment and paperwork to recover a charge on accommodations abroad.
