Global

Details

  • Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 2/14/2014

Dominican Republic - Overview of VAT system, VAT rate 

February 14:  Value added tax (VAT) in the Dominican Republic is known as Impuesto a la Transferencia de Bienes Industrializados y Servicios (tax on the transfer of industrialized goods and services).

As the name implies, this tax applies on the transfer of industrialized goods (whether domestic or imported), imports, and the rendering or leasing of certain services, as long as these are perceived /occur within the country.


Individuals and corporations engaging in any of the referred economic activities are deemed taxpayers under the scope of the VAT law, unless expressly exempted. This rule also applies whether or not the taxpayer has a permanent establishment in the country or whether there is VAT registration with the Dominican tax authorities.

VAT rate

For the tax periods 2013 and 2014, the rate of VAT is 18%. For the 2015 tax period, the VAT rate is reduced to 16%.


Read a report produced by KPMG, and describing the VAT system in the Dominican Republic, as in effect in mid 2013.




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