Starting from July 1, 2023, the 13% VAT was implemented in the tourism sector.
Since July 1, a 13% VAT has been applied to the tourism sector. This measure is based on a transitional provision incorporated in the Law for Strengthening Public Finances (Law 9635) of 2019, which was later extended by the deputies in August 2020 due to the coronavirus pandemic.
The tourism sector has experienced changes in fiscal regulations in recent years. Tourism services paid a 4% rate from July 1, 2020, until August 19 of the same year. Then, they were tax-exempt from August 20, 2020, until June 30 of the following year.
From July 1, 2021, until June 30, 2022, a reduced rate of 4% was applied again, which was then increased to 8% from July 1, 2022, until the past June 30, and finally reached the new charge of 13%.
Chambers of entrepreneurs in the tourism sector state that, although they had expected to reach this percentage, international competition is very intense, and the depreciation of the exchange rate of the dollar places the country in an unfavorable position.