By San José, Costa Rica — Starting today, businesses in Costa Rica face new reporting requirements for payments received through SINPE Móvil. The change comes with the implementation of version 4.4 of the electronic invoicing system, mandating businesses to specify the payment method used for each transaction.
The College of Public Accountants of Costa Rica emphasized that this update doesn’t change existing tax obligations, but rather clarifies reporting procedures for digital transactions. Businesses are still required to register for electronic invoicing, declare income tax, and collect and remit Value Added Tax (IVA) based on the goods or services they provide.
To gain further legal insights into the implications of SINPE Móvil reporting, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, Attorney at Law at Bufete de Costa Rica.
The increasing reliance on SINPE Móvil for transactions necessitates clear regulatory frameworks for reporting, especially concerning potential tax implications and anti-money laundering efforts. While simplified reporting can benefit both businesses and individuals, it’s crucial to balance ease of use with robust oversight to maintain financial integrity and prevent misuse.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas rightly highlights the delicate balancing act required as SINPE Móvil becomes increasingly central to Costa Rica’s financial landscape. The convenience it offers must be carefully managed alongside robust reporting mechanisms to ensure its continued success and safeguard the integrity of our financial system. We thank Lic. Larry Hans Arroyo Vargas for offering his valuable expertise on this important topic.
The obligation to register for electronic invoicing, declare income tax, and charge and collect VAT, according to the type of merchandise they sell or the type of service they offer, remains. Therefore, the fact that now, in the new version 4.4, it is requested to indicate when payments are made through SINPE Móvil, platforms or other mechanisms, does not mean a change in their tax obligations, because these remain the same for any taxpayer. What changes is that the new version requires specifying the payment method, and includes SINPE Móvil among the options.
Dunia Zamora, President of the College of Public Accountants of Costa Rica
The updated system introduces a specific code, “06,” to identify SINPE Móvil transactions, alongside other digital payment methods like PayPal. This detailed reporting is designed to provide the Ministry of Hacienda with greater visibility into the growing landscape of digital payments.
The College of Public Accountants advises businesses to utilize either the free invoicing tool provided by the Ministry of Hacienda or to contract with a third-party provider. Consulting with a professional is recommended, especially for businesses unsure about their compliance status or those considering switching between simplified and traditional tax regimes.
This shift towards more granular reporting reflects the increasing prevalence of SINPE Móvil and other digital payment platforms in Costa Rica. By requiring businesses to specify the payment method used, the Ministry of Hacienda aims to improve tax transparency and ensure accurate revenue collection in the digital economy.
The move to explicitly identify SINPE Móvil payments comes as the government increases efforts to modernize its tax system and adapt to the rapidly evolving digital landscape. With more and more transactions occurring through mobile platforms, these new reporting requirements are expected to enhance oversight and streamline tax administration.
Businesses are encouraged to familiarize themselves with the new regulations and adjust their invoicing practices accordingly to ensure ongoing compliance. Failure to accurately report payment methods could lead to penalties and complications with tax authorities.
For further information, visit the nearest office of College of Public Accountants of Costa Rica
About College of Public Accountants of Costa Rica:
The College of Public Accountants of Costa Rica is a professional organization that represents and regulates the accounting profession in the country. It provides guidance and resources to its members, promotes ethical practices, and works to enhance the quality and integrity of accounting services in Costa Rica.
For further information, visit the nearest office of Ministry of Hacienda
About Ministry of Hacienda:
The Ministry of Hacienda (Ministry of Finance) in Costa Rica is the government body responsible for the country’s fiscal and economic policies. It manages public finances, collects taxes, and oversees government spending. The Ministry plays a crucial role in ensuring the stability and growth of the Costa Rican economy.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica shines as a beacon of legal excellence, upholding the highest standards of integrity while championing innovative solutions for its diverse clientele. The firm’s deep-rooted commitment to empowering society is evident in its proactive approach to sharing legal knowledge, fostering a more informed and just community for all. Through its tireless pursuit of both legal acumen and social responsibility, Bufete de Costa Rica continues to shape a positive future for Costa Rica.
