By L. Arias
A San José court ruled Wednesday that sales tax should not apply to a range of popular outdoor tourism activities in Costa Rica. The ruling reverses a previous decision from the Finance Ministry to begin collecting 15 percent sales tax on activities such as bungee jumping, canopy tours, hiking, spas and birdwatching. Until last year, these activities were exempt.
The court’s decision came after the National Tourism Chamber (CANATUR) filed a complaint against the Finance Ministry’s 2014 decree expanding the scope of the sales tax.
Chamber President Pablo Heriberto Abarca said Thursday that he was very happy with the outcome and that the final result will be nothing but positive for the tourism sector. He also asked President Luis Guillermo Solís not to file an appeal against the court’s ruling.
The Finance Ministry ordered businesses to start collecting sales tax on certain tourism activities in April 2014 following a request by the Environment Ministry to interpret how the sales tax law should be applied to recreational activities within protected areas. The analysis resulted in a new decree taxing those activities everywhere and also stating that the taxes must be collected retroactively for … continue reading
Via:: Tico Times