Taxes and shopping: Dominican Republic invites tax breaks

Taxes and shopping: Dominican Republic invites tax breaks

For those who dream of combining a vacation in paradise and shopping, the Dominican Republic is becoming an increasingly attractive place. The Senate of the Dominican Republic has decided to refund value added tax (VAT) for foreign citizens who come to make purchases on the Caribbean shores. This step is designed to attract the attention of foreign tourists and make the Dominican Republic the new fashion capital of the world. Let's look into the details!

Value Added Tax in the Dominican Republic (ITBIS)
Before diving into the details of the new law, let's talk about the value added tax in the Dominican Republic, which is usually called ITBIS. This tax is 18% of the cost of goods and services. So, if you are shopping in the Dominican Republic, you were required to pay this tax.

ITBIS refund for foreign buyers
A new bill approved by the Senate of the Dominican Republic provides for the possibility of returning ITBIS for foreign citizens who purchase goods worth $ 100 or more. This means that now foreign tourists can count on a refund of part of the money spent.

Tax Refund conditions
To take advantage of this tax benefit, several conditions must be met. Here are the main ones:

Cost of goods
As already mentioned, in order to be eligible for an ITBIS refund, the purchase amount must be at least $100. This means that you will be able to get a discount both when buying local goods and foreign-made goods.

Terms of return
After the purchase, you have 60 days to request a tax refund. Therefore, do not forget to save receipts and purchase documents.

Tax Free zones at airports
Now it remains to wait for details about which airports in the Dominican Republic will create special zones for tax free shopping. This will be an additional incentive for foreign tourists to shop in this Caribbean country.

Thus, the Dominican Republic seeks to attract even more tourists and make shopping in the country more attractive. A refund of value added tax for foreign citizens is a great opportunity to save money when traveling. Stay up to date with the news about the creation of tax free zones at the airports of the Dominican Republic and enjoy shopping in this paradise!