The most recent regional tax statistics show significant differences in the structure and collection of the value-added tax (VAT) between the countries of Latin America and the Caribbean, in a context where this tax continues to represent one of the main sources of tax revenue for the economies of the region.
Costa Rica maintains a general VAT rate of 13%, while the regional average is 14.6%. In other Latin American countries, the general rates reach higher levels, such as Colombia and Chile with 19%, Peru with 18% and Argentina with 21%.
The regional analysis also shows that the performance of VAT does not depend solely on the applicable rate, but on factors such as the extent of the taxable base, exemptions, reduced rates, and levels of tax compliance.
For Costa Rica, these comparisons take on significance at a time when the discussion continues about the efficiency of tax collection, tax exemptions, and alternatives to strengthen public revenues without necessarily resorting to increases in tax rates.