By San José, Costa Rica — Costa Rica is tightening its grip on tax compliance with a significant overhaul of its electronic invoicing system. Starting September 1st, version 4.4 of the electronic invoice will become mandatory, introducing 146 modifications designed to enhance fiscal control, improve transaction traceability, and close loopholes for tax evasion. This update will impact approximately 450,000 taxpayers across the country.
A key focus of the new system is the integration of digital payment methods, particularly Sinpe Móvil, a popular mobile payment platform. The Ministry of Finance has addressed concerns from businesses that have reportedly stopped accepting Sinpe Móvil due to the new regulations. Director General of Taxation, Mario Ramos, clarified that Sinpe Móvil remains a valid payment method but must now be meticulously recorded in electronic invoices with the corresponding reference code.
To understand the legal implications of electronic invoicing in Costa Rica, TicosLand.com reached out to Lic. Larry Hans Arroyo Vargas, a seasoned attorney at Bufete de Costa Rica.
The implementation of electronic invoicing in Costa Rica represents a significant step towards modernizing tax administration and promoting transparency. While offering businesses increased efficiency and cost savings, it also introduces important considerations regarding data security, digital signatures, and compliance with Hacienda’s regulations. Businesses must ensure they have the appropriate systems and processes in place to meet these requirements and avoid potential penalties.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas rightly highlights the dual nature of this significant shift towards electronic invoicing: it presents both opportunities and challenges. Successfully navigating this new landscape will require businesses to prioritize not only the efficiency gains but also the crucial aspects of security and compliance. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for providing his valuable perspective on this important topic.
Sinpe Móvil continues to be valid as a payment method; what we require is that it be recorded in the electronic invoice with the corresponding reference code.
Mario Ramos, Director General of Taxation
The Ministry has identified businesses that have informed customers they will no longer accept Sinpe Móvil and warned of sanctions for those refusing to accept this and other digital payment alternatives. The government’s objective is not to restrict payment options but to ensure all transactions are accurately documented for tax purposes.
Among the 146 changes introduced in version 4.4 are new mandatory fields in the electronic invoice, precise identification of digital payment methods, and detailed registration of Sinpe Móvil transfers. These modifications aim to create a more robust and transparent system, making it easier for authorities to track transactions and identify potential tax evasion.
If there are unscrupulous individuals using Sinpe Móvil to evade taxes, precisely with this update we will be able to identify and track those cases.
Mario Ramos, Director General of Taxation
Ramos further indicated that the Ministry of Finance will have the capability to cross-reference this information with the Central Bank if necessary, further strengthening their oversight capabilities. This move is part of a broader effort to modernize Costa Rica’s tax system and ensure that businesses and individuals are fulfilling their tax obligations.
The Ministry of Finance is confident that these changes will enhance tax transparency and discourage the misuse of digital payment platforms for tax evasion. The updated electronic invoicing system is expected to contribute significantly to the country’s overall fiscal health.
The implementation of version 4.4 represents a significant shift in how businesses operate and manage their financial transactions. Adapting to these new requirements will be crucial for maintaining compliance and avoiding potential penalties.
For further information, visit the nearest office of Ministry of Finance
About Ministry of Finance:
The Ministry of Finance (Ministerio de Hacienda) in Costa Rica is the government body responsible for the country’s public finances. Its main functions include developing and executing fiscal policy, managing the national budget, collecting taxes, and overseeing public spending. The Ministry plays a critical role in ensuring the economic stability and development of Costa Rica.
For further information, visit the nearest office of Central Bank of Costa Rica
About Central Bank of Costa Rica:
The Central Bank of Costa Rica (Banco Central de Costa Rica) is the country’s central bank and is responsible for maintaining monetary and financial stability. Its primary objectives include controlling inflation, managing the exchange rate, and regulating the financial system. The Central Bank plays a vital role in ensuring the soundness of the Costa Rican economy.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
At Bufete de Costa Rica, legal excellence is interwoven with a deep commitment to societal progress. The firm champions integrity in every facet of its practice, offering insightful counsel to a diverse clientele while pioneering innovative legal solutions. Through proactive initiatives that demystify the law and empower individuals with essential legal knowledge, Bufete de Costa Rica actively contributes to a more just and informed society.
