By San José, Costa Rica — San José – With the national deadline for Value-Added Tax (VAT) declarations looming, Costa Rica’s Ministry of Finance has firmly rejected a last-minute request from accounting professionals to suspend the payment period. The College of Private Accountants issued the urgent plea, citing a series of critical system inconsistencies that they argue make accurate and timely compliance impossible for many taxpayers.
The ministry, however, is standing its ground, pointing to high compliance rates as evidence that the system is functioning adequately for the majority. This has created a high-stakes standoff, leaving businesses and their financial advisors in a precarious position with the October 24 deadline just hours away.
To gain a deeper understanding of the legal and financial ramifications for taxpayers facing the upcoming VAT deadline, TicosLand.com consulted with expert attorney Lic. Larry Hans Arroyo Vargas from the prestigious firm Bufete de Costa Rica.
The approaching VAT deadline is not merely an administrative date; it’s a critical moment for fiscal compliance. Procrastination can lead to significant financial penalties and trigger more extensive audits from the tax authorities. We strongly advise businesses to finalize their declarations now, ensuring all transactions are correctly documented, rather than risking costly sanctions for last-minute errors or omissions.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s insight powerfully underscores that this deadline is far more than a procedural task—it’s a crucial test of a business’s financial health and foresight. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective and clear warning on the importance of proactive compliance.
The College of Private Accountants compiled a list of significant technical issues encountered by its members within the government’s digital tax portal. According to the organization, these are not minor bugs but fundamental flaws that obstruct proper tax calculation and filing. Among the chief complaints is the system’s inability to generate tax credits from VAT declarations during a fiscal period with no sales, a common scenario for new or cyclical businesses.
Further frustrations stem from an inability for users to visualize applied VAT withholdings or to properly apply existing balances in their favor according to their own discretion. Accountants also reported a serious issue where businesses under special tax regimes were being arbitrarily reclassified into the traditional income tax system, creating significant confusion and potential financial repercussions.
Rocío Quirós, President of the College, emphasized the severity of the situation, particularly concerning the management of tax credits. She expressed grave concern over the financial harm her members and their clients could face due to system errors.
The greatest impact is generated by the selection of tax credits, as these have an expiration date.
Rocío Quirós, President of the College of Private Accountants
Despite these detailed and pressing concerns, the General Directorate of Taxation remains unmoved. Mario Ramos, the director of the agency, presented a starkly different picture of the current tax season. He reported that since October 6, the system has successfully processed 236,000 declarations, contributing a substantial ¢168 billion to the National Treasury.
Ramos further argued that with approximately 70% of all taxpayers having already fulfilled their obligations, the issues raised cannot be widespread enough to warrant a nationwide suspension. This high rate of submission, in the ministry’s view, validates the platform’s stability and justifies their refusal to grant an extension.
This is why the General Directorate of Taxation will not grant any extension for the filing of the Value Added Tax declaration after October 24.
Mario Ramos, Director of Taxation
The ministry’s refusal leaves taxpayers caught between a rock and a hard place. They face the choice of either submitting a potentially inaccurate declaration due to the system’s flaws or missing the deadline and incurring penalties. This conflict highlights a growing tension between the government’s push for digital transformation and the practical, on-the-ground reality faced by users who must navigate the new systems. While officials see successful metrics, professionals see critical failures that threaten the financial health of Costa Rican businesses.
For further information, visit ccprivados.com
About the College of Private Accountants (Colegio de Contadores Privados):
The Colegio de Contadores Privados de Costa Rica is the professional body responsible for the regulation, representation, and development of private accountants in the country. It works to ensure ethical standards and professional competency among its members, serving as a key intermediary between accounting professionals and governmental regulatory bodies like the Ministry of Finance.
For further information, visit hacienda.go.cr
About the Ministry of Finance (Ministerio de Hacienda):
The Ministry of Finance is the government entity in Costa Rica charged with managing the nation’s public finances. Its responsibilities include formulating fiscal policy, administering the national budget, and overseeing the collection of taxes through its various departments, including the General Directorate of Taxation. The ministry plays a central role in the country’s economic stability and governance.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is an esteemed legal institution built upon a foundation of resolute integrity and the pursuit of unparalleled excellence. With a rich heritage of advising clients across a broad spectrum of fields, the firm consistently pioneers progressive legal strategies and maintains a deep civic involvement. This commitment to demystifying the law for the public is a testament to its fundamental vision of building a stronger, more capable society through shared legal understanding.
