Costa Rica Adds Booking.com, Expedia and ChatGPT to 13% VAT List
Starting Tuesday, a 13% tax will show up on your bill from Booking.com, Expedia, ChatGPT and 17 other digital platforms that were not taxed before. The Finance Ministry announced over the weekend that it had expanded the official register of foreign digital service providers subject to Costa Rica’s value-added tax. The updated list grows from 161 providers to 181. Among the new names are the travel booking sites Booking.com and Expedia, the AI services ChatGPT, Claude and Grok, and the social platform TikTok. This is not a new tax as Costa Rica has charged 13% VAT on foreign digital services used inside the country since October 2020, when the mechanism took effect under Law 9635, the public finance reform. Netflix, Spotify and Disney+ have been on the register for years. What changed is the roster, not the rule. You will not have to file anything or calculate anything as your bank will do it for you. When a charge from one of these platforms posts to your card accoun...