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BiggerDominican Tax Reform eliminates exemptions for small online purchases
Santo Domingo.- The new Tax Modernization Bill proposed by the Dominican Government introduces significant changes to the tax treatment of online purchases. Previously, items valued at less than $200 bought through foreign platforms were exempt from taxes. Under the new bill, this exemption is removed, subjecting all online purchases to Value Added Tax (VAT) and other customs duties, regardless of the purchase amount.
The reform, detailed in Article 22 of the amended Tax Code, means that consumers will now pay taxes on items ordered from platforms like Amazon and eBay, ending a longstanding tax advantage for minor online purchases. The law also mandates that these taxes apply to all digital platforms serving Dominican consumers, even if the service provider lacks a physical presence in the country.
This policy change aligns with the global trend of taxing e-commerce transactions based on their destination, aiming to create a level playing field for local and international businesses while increasing government revenue from digital commerce.
We already have some of the highest taxes and cost per goods in the world. They still want to tax us to death!
The $200 tax exemption is an instrument to facilitate commerce among nations. It allows inexpensive and/or sample products to be imported and exported to and from the Dominican marketplace. It acts as an incentive to create a greater volume of business, tax revenue business. Should the RD be unwise and eliminate the exemptions, other nations would retaliate and tax Dominican goods under $200 entering their countries.
Simply a very dumb move..
This was tried 10 years ago and failed. The $200 exemption was agreed in the DR – CAFTA trade agreement.
The only thing cheap in the DR is labor and there are reasons to due govt employment rules and low skill levels. Now people already with a delicate standard of living are going to be hurt more with taxes. Buy something from the states possible local sales tax added, shipping cost, and now a punitive VAT and customs duty on top of the product cost. Plus the shipping and taxes are taxed.
A couple of years I needed a battery charger and local PriceMart listed it for $94.00. I found the exact model including the exact webpage description at a US Walmart for $24.00 Guess where I bought it from.
Wow, you guys are getting bent over and slammed, you’re going to be broke and there will be no darkies to blame. then what?. Well i guess the dream is dead, no more cheap construction or food, followed by less tourism and a collapsed peso. At least ablundader got that new tax and labour code sorted out eh? . That will help…. him and his sponsors. not you. morons
This is terrible news…
It is hard to find many everyday quality products in the DR. With this new tax the cost of small purchases will no longer be affordable for many.
I love living in DR. However, as an Expat, I find the cost of living becoming comparable to the US without all of the conveniences and comforts. Being able to buy online quality affordable products was a way to offset some of that burden.
I hope it is rethought and not passed into law.