Costa Rica issues decree to combat vehicle under-invoicing

The Costa Rican Ministry of Finance has issued Decree 45920-H to combat the under-invoicing of imported vehicles, a practice that has reportedly resulted in ₡20 billion in lost tax revenue.

Under the new regulations, the tax base for both new and used vehicles will be determined by comparing the commercial invoice value (including freight and insurance) against the official value registered by the Ministry of Finance. Taxes will be calculated based on whichever of these two values is higher. If a specific model is not listed in the official registry, importers must provide technical information to establish an objective value.

To strengthen sector formality, the decree also limits individuals not registered as vehicle sales taxpayers to importing only one vehicle per year. The government stated these measures aim to ensure fairer market competition and prevent the tax evasion that occurred after previous directives allowed importers to declare values via sworn statements, which led to significant discrepancies between reported and market prices.