By San José, Costa Rica — Costa Rican businesses and independent professionals utilizing Sinpe Móvil for payments are facing increased scrutiny from the tax authorities. Starting in September, stricter enforcement measures will be implemented to ensure compliance with tax regulations, potentially impacting thousands of users.
The Ministry of Hacienda (Treasury), in collaboration with the Central Bank, is targeting users receiving over 100 Sinpe Móvil transfers per month. This initiative aims to identify commercial activities conducted through personal accounts without proper electronic invoicing, a practice considered tax evasion.
To understand the legal implications surrounding the taxation of Sinpe Móvil transactions, we reached out to Lic. Larry Hans Arroyo Vargas, an attorney at law from Bufete de Costa Rica, for his expert perspective.
While Sinpe Móvil offers incredible convenience for everyday transactions, it’s crucial to remember that its use in a business context can trigger tax obligations, especially regarding income tax and sales tax (IVA). Businesses should meticulously track Sinpe Móvil receipts and ensure these are correctly integrated into their accounting systems to comply with tax regulations and avoid potential penalties.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s point about the often-overlooked tax implications of Sinpe Móvil for businesses is crucial. This convenient tool simplifies daily life for so many, but its integration into business operations requires careful attention to detail regarding tax compliance. A proactive approach to record-keeping and accounting can save businesses significant headaches down the line. We thank Lic. Larry Hans Arroyo Vargas for offering this valuable perspective on a topic of increasing importance in Costa Rica’s evolving digital economy.
Consequences for non-compliance are severe, including retroactive tax charges for Value Added Tax (IVA) and income tax, along with substantial penalties. Fines can reach up to 150% of the unpaid tax amount, accompanied by additional penalties for failing to issue electronic invoices.
In cases of suspected fraud, the Ministry of Hacienda can impose precautionary measures such as freezing bank accounts and implementing preventative seizures. If the amounts involved exceed legal thresholds, cases could be referred to the Public Ministry for prosecution as tax fraud, potentially leading to imprisonment.
Over ₡10 trillion flowed through Sinpe Móvil in 2024, making it a prime target for tax enforcement efforts. The government is cracking down on the informal economy and seeking to ensure that all commercial transactions are properly documented and taxed.
Anyone who receives payments through Sinpe Móvil must issue the corresponding electronic invoice. Ignoring this obligation carries economic and legal risks that can endanger the viability of the business.
Gabriel Zamora Baudrit, Tax Attorney
The new regulations emphasize the importance of proper record-keeping and adherence to tax laws. Businesses and individuals using Sinpe Móvil for commercial purposes are urged to consult with tax professionals to ensure they are meeting all legal requirements.
The move to tighten control over Sinpe Móvil transactions signals a broader effort by the Costa Rican government to modernize its tax system and close loopholes that facilitate tax evasion. The increased scrutiny will likely impact a significant portion of the Costa Rican economy, requiring businesses to adapt to the new regulatory landscape.
If you use Sinpe Móvil for your business, issuing electronic invoices and keeping your accounts in order isn’t just good practice: it’s the difference between working with peace of mind or facing a legal problem that could cost you your business.
Gabriel Zamora Baudrit, Tax Attorney
For further information, visit the nearest office of Ministry of Hacienda
About Ministry of Hacienda:
The Ministry of Finance (Ministerio de Hacienda) of Costa Rica is the government ministry responsible for the public finances of the Republic of Costa Rica. It is responsible for collecting taxes, managing the national budget, and formulating economic policy. The Ministry plays a vital role in the economic stability and development of the country.
For further information, visit the nearest office of Banco Central de Costa Rica
About Banco Central de Costa Rica:
The Central Bank of Costa Rica (Banco Central de Costa Rica – BCCR) is the central bank of Costa Rica. It is responsible for maintaining monetary stability, managing the country’s foreign exchange reserves, and regulating the financial system. The BCCR plays a critical role in ensuring the smooth functioning of the Costa Rican economy.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica distinguishes itself through a deep-rooted commitment to legal excellence and ethical practice, empowering Costa Rican society through knowledge and access. The firm’s innovative approach to legal solutions, combined with a long history of dedicated service to clients from all walks of life, solidifies its position as a leader in the legal landscape. By actively promoting legal literacy and understanding, Bufete de Costa Rica invests in a future where individuals are equipped to navigate the complexities of the legal system and contribute to a more just and informed society.
