The current government, as its three predecessors, is intent on introducing sweeping tax reforms that include the introduction of a Value Added Tax (VAT) or Impuesto al Valor Agregado (IVA) in Spanish, that proposes to tax many items not taxed under the simple Impuesto de Ventas (IV) or Sales Tax currently applied to consumer purchases.
One of the items that would be taxed IF and when the IVA is approved and goes into effect is Netflix.
That is, for the current monthly Netflix of $10.99 (¢6,300 colones), the cost would be US$12.41 with the 13% tax, if payment is processed in Costa Rica.
To collect the tax, the law would require issuers of credit and debit cards to collect the tax when processing the payment.
But what of payments