Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What is the VAT rate in the Dominican Republic and how is this tax applied?

April 26, 2017applied dominican republic rate tax VAT

0

Posted

What is the VAT rate in the Dominican Republic and how is this tax applied?

1 Answer

0

Posted

The Dominican equivalent of the VAT is the ITBIS, which applies to (i) the transfer of industrialized goods, calculated on the net transfer price plus accessory services, (ii) the import of industrialized goods, calculated on the CIF value of the goods plus custom duties, and (iii) the provision and lease of services, calculated on the value of service excluding mandatory tips. The ITBIS rate is currently 12%. Advertising services are taxed with a lower rate of 6%.