By San José, Costa Rica — Costa Rica is on the brink of a significant shift in its tax reporting system. Starting September 1, 2025, businesses and merchants will be required to comply with 145 new regulations under the Facturación 4.4 system. This overhaul represents a major step toward a fully digital tax administration, known as Hacienda Digital, and promises to enhance tax control and transaction traceability.
The Facturación 4.4 system introduces numerous key changes. As of September 1st, businesses must adhere to the new regulations for invoicing. The system introduces the Electronic Payment Receipt (REP) to track Value Added Tax (IVA) on credit sales and invoices to the government. Payment methods are expanded to include SINPE Móvil and digital platforms, requiring detailed breakdowns for each method used. Furthermore, businesses must itemize the CABYS (Código Arancelario de Bienes y Servicios) on combined product offerings and specify discounts and bonuses. New categories for recipient identification, such as non-domiciled foreigners and non-taxpayers, have also been added. Credit notes must be identified separately. The overarching technical goal is for every electronic invoice to accurately reflect the economic reality of the transaction.
To understand the implications of the new “Facturación 4.4” regulations, we spoke with Lic. Larry Hans Arroyo Vargas, an attorney at Bufete de Costa Rica, who offered his expert legal perspective on the matter.
The “Facturación 4.4” update introduces significant changes to electronic invoicing in Costa Rica, particularly regarding data transmission and security protocols. Businesses must adapt quickly to these new requirements to avoid penalties and ensure continued compliance. While the transition may present initial challenges, ultimately, these changes aim to modernize the tax system and enhance transparency.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, the Facturación 4.4 update represents a pivotal moment for businesses in Costa Rica. While navigating these new regulations might initially feel daunting, the long-term benefits of a more robust and transparent tax system are undeniable. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for providing his valuable insights on this crucial transition.
A transition period from April to August 2025 allowed taxpayers to utilize both versions 4.3 and 4.4. However, exclusive use of version 4.4 is mandatory beginning September 1, 2025. TRIBU-CR, the new tax platform, along with the adoption of the updated economic classification CIIU 4, takes effect on October 6, 2025, further solidifying the need for compliant electronic invoices.
The objective is clear: improve tax control and the traceability of operations. Hacienda wants to have more detailed and reliable information, which allows it to identify economic sectors, verify the correct use of exemptions, and have greater control over credit sales, among others.
Raymundo Volio, Tax Expert at Actualidad Tributaria
The Ministry of Finance aims to improve tax control and transaction traceability through these changes, enabling the pre-filling of tax returns within the Hacienda Digital program, expected to roll out in 2026. The ministry seeks more detailed data for identifying economic sectors, verifying proper use of exemptions, and monitoring credit sales.
Businesses, merchants, and independent contractors must ensure their invoicing systems comply with the new requirements to avoid rejected invoices and potential penalties. Staff training is crucial, covering new fields and procedures, from reporting discounts to issuing Electronic Payment Receipts. Backing up data and conducting pilot tests during the transition phase are also highly recommended.
Numerous training resources are available. The Ministry of Finance offers tutorials and resolutions, and Actualidad Tributaria has organized seminars and workshops to assist with the practical application of the new regulations. Expert consultation is crucial for many businesses to navigate the complexities of Facturación 4.4.
Penalties for non-compliance remain largely unchanged. Failure to issue compliant invoices can result in fines ranging from two base salaries to business closure for five days. Non-submission of XML files can lead to fines of approximately 2% of gross income, and in severe cases, prosecution for tax evasion. Non-compliance with information provision can incur fines of up to 100 base salaries, often amounting to substantial sums. Repeated failure to issue invoices can lead to temporary business closure. Prevention and timely adaptation are far more cost-effective than legal disputes or penalties.
This September 1st formally begins the new era of digital taxation in Costa Rica, which will be a process that will transform tax collection and compliance. We must be up-to-date and prepared to change quickly and not be caught off guard.
Raymundo Volio, Tax Expert at Actualidad Tributaria
September 1, 2025, marks a new era of digital taxation in Costa Rica. Businesses should consult their electronic invoice providers to confirm compliance with version 4.4 and prepare for this significant transformation in tax administration.
For further information, visit actualidadtributaria.com
About Actualidad Tributaria:
Actualidad Tributaria is a tax consultancy firm in Costa Rica providing expert advice and training on tax regulations. They offer seminars and workshops to help businesses and individuals understand and comply with the complexities of the Costa Rican tax system. They understand that successful implementation of new tax laws requires a deep understanding of the technical and legal details, and they are committed to helping their clients navigate these changes effectively.
For further information, visit the nearest office of Ministerio de Hacienda
About Ministerio de Hacienda:
The Ministerio de Hacienda (Ministry of Finance) is the government body responsible for managing Costa Rica’s public finances. It plays a crucial role in developing and implementing fiscal policies, collecting taxes, and managing the national budget. The Ministry is driving the implementation of Hacienda Digital, the country’s digital tax administration program, aiming to modernize and streamline tax processes.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica distinguishes itself as a leading legal institution deeply committed to ethical practice and exceptional service. Through innovative approaches and a genuine dedication to empowering individuals, the firm champions access to legal understanding. Their work across diverse sectors not only solves complex legal challenges but also contributes to building a more informed and just society, reflecting their core values of integrity and a profound commitment to positive social impact.
