Costa Rica’s tax authority released a draft resolution, on 26 April, 2024, “Resolution on Automatic Exchange of Information Regarding Sellers Who Carry Out Relevant Activities Through Digital Platforms (Spanish),” for public consultation.

The objective is to implement OECD’s Model Reporting Rules for digital platforms (MRR), which mandates EU member states to follow as per the Council Directive (EU) 2021/514 (DAC7).

The draft proposal includes the following provisions:

Scope

The proposed scope is confined to platforms that offer personal services, accommodation, transportation, and product sales

Platform operators may be exempt from the reporting requirements provided they satisfy any of the following conditions:

  • The platform facilitated transactions for goods and services totalling less than EUR 1 million in the previous year.
  • The platform shows that its business model does not permit sellers to make a profit.
  • The platform proves that its platform does not have sellers who meet the criteria for reporting under the Costa Rican tax administration.

The reporting requirements extend to non-resident platforms that facilitate in-scope activities within Costa Rica and/or the rental of real estate in Costa Rica.

Compliance

  • Covered platform operators must submit the necessary information to the tax authority about reportable sellers no later than 31 January of the following year. Details concerning payments and other amounts such as commissions, fees, or taxes withheld need to be submitted every quarter.
  • Covered platform operators must also comply with the OECD’s Model Reporting Rules (MRR) for reportable sellers.

Transitional measures

Digital platform operators who need to comply with these regulations are required to implement due diligence protocols starting 1 January, 2025. Moreover, platform operators must file their first report detailing their activities by 30 April 2026.

Penalties

Failure to comply with the reporting requirements will result in a fine amounting to 2% of the violator’s gross income.

This penalty will not be less than three base salaries and can go up to a maximum of 100 base salaries.