The Heavy Impact Of Vat On The Technology Sector In Costa Rica

The Internet of things, artificial intelligence, big data, robotics … 

Are some of the advances that have been made in recent years with the aim of simplifying various tasks of our daily lives.

But if there is something that even science and technology, no matter how advanced, have been saved from: Compliance with the tax laws of the country they operate in.

There is no company that escapes its obligations to the State, regardless of its level of technology.

Companies established in Costa Rica, have to pay Value Added Tax (VAT), according to the new law No. 9635 – “Act Strengthening Public Finance”. This law came into effect on July 1, 2019.

Now, a few months in … how has VAT affected the industry? What is its economic effect? What changes have been made?
These are some of the key questions for the sector that we will address in this article about the impact of VAT on the technology sector of Costa Rica.

Taxed Technology

To start, a little background info: Before July 1 2019, what existed was the General Sales Tax (IGV – Impuesto General de Ventas), which was 13% and only applied for the purchase of products.

The new law not only came to replace the IGV with the Value Added Tax (VAT) but also to extend it to previously untaxed services.

With some exceptions, we now pay 13%, 4% or 2% for conultations, medical services, design, education, remodeling of properties, aesthetics, recreational services and others.

Regarding the purchase of technological products and services in the country and abroad – antivirus, licenses, software, computer programs, entertainment platforms – the maximum rate of 13% applies.

It also covers equipment maintenance services, custom software development, application development and network maintenance.

Blow to Competitiveness

Although the objective of the law is positive in trying to alleviate the fragile situation of public finances, it is doing so at the cost of the profitability and competitiveness of many companies, including technology.

When previously small companies only needed to hire accountants on an occasional basis, today they permanently require their services in order to fulfill the process in a timely manner; every month.

This translates into a minimum of three hours of work, which, according to the College of Private Accountants of Costa Rica, means a monthly outlay of about ¢ 72,500 (the professional time is set at ¢ 24,163). This equeals to about 130USD.

Another point to take into account is that the one who assumes the payment of VAT is the customer and the supplier is only limited to collecting the tax, generating a considerable increase in the price of services.

Let’s look at the impact of VAT on the technology industry, reflected in a hypothetical case. Suppose you have a small software company dedicated to the sale of licenses inside and outside of the country. Although for exports it will not involve any change – the tax is territorial and therefore does not apply to consumption abroad -, in relation to local sales, which are subject to VAT with a maximum of 13%.

In practical terms, this means that, if before July 1, you sold a license for $ 200, after that date you must add the $ 26 tax, for a total of $ 226 (more than ¢ 15,000 difference from at the original price).

Faced with this scenario, the provider faces two equally complicated scenarios. One is to absorb the cost of VAT and the other is to lower the service fee so that the customer continues to pay the same or a portion of the tax is transferred.
In both cases, it would be sacrificing profitability and competitiveness in exchange for not affecting the customer’s ability to consume.

A little Extra on Top – Electronic Invoices

One of the steps prior to the implementation of VAT in order to reduce tax evasion was the adoption of the mandatory electronic invoice, since 2018.

With all of this and the benefits that this entails for the taxpayer, such as greater security and integration of operations, it is still an additional investment.
Although the Hacienda’s free platform exists, there are those who prefer to hire one of the 26 suppliers authorized to provide the service, the cost of which can be up to ¢ 50,000 for the issuance of 1,000 documents. (About 90USD)

So far, we have ¢ 72,500 (130USD) monthly accountant fees, plus ¢ 50,000 (90USD) of the electronic billing package, for a total of ¢ 920,000 (1630USD) per year.
And if we add to this the training of personnel and the eventual implementation of ERP-type business management systems, the sum could become much higher.

Does this mean that the new Fiscal Plan is bad? Do we return then to the previous Sales Tax and paper bills?

Neither one nor the other. This article simply limits itself to showing the reality as it is, without ignoring the sacrifices and investments that all change demands for those involved.

What other effects does the new law have on technology companies?

What is the best strategy to face them without compromising future stability and solvency?

Tell us in the comments and we continue discussing the impact of VAT on the technology sector in Costa Rica.

To read the original article on our site in Spanish click here

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Modern Wedding Photography

Before we start evaluating the different elements of modern wedding photography, let us form an overview of the fundamental concept that is responsible for the inception of this trend. The term, modern wedding photography refers to all those frames that candidly capture the moments and every surrounding component that grants it the hint of incredibility. The traditional wedding photography wholly focused on the couple intending to draw the entire set of attention towards them; but today, with changing times, the desires and perception of photography have undergone alterations too. Everything that circumscribes the couple is projected in the pictures in such a way that it seems like the picture wouldn’t have gained its essence if not for those little details. In the following section, let us take you through the intricacies and styles of modern wedding photography so that you know which one to resort to for your wedding.

wedding

  • Pre and post-wedding shoot

Like we have already mentioned, the purpose of modern wedding photography is to render the album with a life of its own, something that in itself relates a journey of explicit emotions without depending upon words to explain them. Therefore, the pre and post-wedding shoots today are indispensable simply because, through this, the Norwich wedding photographer would track an expedition in the true sense of the term. The former kind represents two individual lives that have fallen for each other and is ready to take up the excitement of the married life; while the latter discloses the joys of the two lives finally embedded into a single one with dependence and relativity.

  • The vintage style

Modern wedding photography doesn’t simply limit its terms to the peripheries of the constituents that are exclusive to the century that we are living in; streamlining the chic segments of the vintage with the quirks of the modern is what gives the wedding album a character of its own. Moreover, the vintage photographs have a distinct appeal about themselves which is otherwise rare to find; the moment you cast a glance upon them, they will take you back in time and remind you of the royal affair that your wedding was. Garnishing the photographs with an antique form can be done in both ways; either the photographer will employ a venue and objects that have a solitary history and untraversed value or edit the pictures in a way that will transform the posh into rustic.

  • Destination wedding photography

If we are asked to name one stalwart when it comes to noting down modern photography, we cannot help but assert it to be the destination wedding. A destination wedding photographer when accorded with the responsibility will uniformly and transparently give you leads to capitalize on the venues and concede the exceptional aura of theirs in your pictures. This style primarily strikes equal chords with the units of fine art and documentary to place the couple in a frame whose backdrop is constituted by the destination’s landscape, architecture, religious and cultural modules, and the unnoticed natural elements. The details of these pictures hold the highest value and their objective is to intermix the dispositions of the couple and the destination, even if they are contradictory and serve them with an unknown mysticism and persona.

  • Lifestyle wedding photography

For couples, who like to keep their approaches and movements subtle yet make an everlasting impact, the lifestyle wedding photography stands out as the most appropriate recourse. An award-winning wedding photographer will know how to combine the candid moments between the individuals with the minimal directions that have been approved by your requirements. This form is a portion of the conventional photojournalistic strategy, but with a romantic twist.

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How and Where To Invest Your Money As Student?

Generally, most of the students stay concerned about scoring good in their exams and searching for their dream job. Few others are more lined up in some extra-curriculum activities or sports. But there are few creative students that are always looking for some handsome investment opportunities.

In case if you are also excited to begin with strategic investments, it is good to go through the expert tips regarding how and where to invest as a student. We understand that you have limited sources of money and cannot take more risks; in such situations, expert guidelines can help you better plan your initial investments.

Invest Your Money As Student

Below we have highlighted a few details about how and where you can invest money for fruitful returns:

  • Gain more knowledge:

The very first thing you can do to make considerable profits as a student is learning about the best investment strategies in the market. The experienced investors have written several books to assist beginners in this task. These guidelines can help you better to analyze bonds, stocks, and mutual funds. In case if you find these books too expensive to buy; prefer to get them through online and offline libraries. Take some time to understand performance of top-rated stocks and study investment charts.

  • Pay off your debts:

Chances are that you are desperate to invest money to earn more, but it is not always so easy to risk your hard-earned money. Experts advise students to get started with pending debt payments first. It will help you avoid heavy interest rates in the future, and you can naturally save more. Soon, you will have more funds to invest in other areas to earn high profits.

  • Choose a brokerage:

When you are mentally prepared to move ahead with investments, it is the right time to open your brokerage account. Generally, there are two main choices: online discount brokers and traditional brokerages. For the first case, you can enjoy online trading with extended support of software and computer programs. Whereas for the second type of investment, you may need advice from experienced brokerages.

  • Investment diversification:

Putting all your money into a single big investment is a bad decision. Rather, you should divide the money into multiple smaller investments. It is good to keep extra funds in the bank account to handle the emergencies. Keep on judging market ups and downs and spread out your investment choices. It can also help you boost your returns and portfolio in the long run.

  • Start on time:

There is no point in delaying your investments. Rather, you should start early so that you can learn important concepts. It is good to check behaviour of various stocks online and then make strategic plans by consulting some experienced investors.

Another amazing option for students is to buy silver bullion bars when they are at a low price and then sell them when price goes up. It can help you to make considerable profits. Start by saving some amount right from the beginning days of your college education and then invest in silver bullion bars to multiply your returns.

  • Buy Investment Property:

In case if your family or friends can support you with this, it is good to purchase a valuable real estate or some rental property near your college. You can rent out rooms in this property to manage mortgage payments and with time, it can also generate a steady stream, of profits. Once you are done with your college, you can sell this property at a considerable profit or keep it rented out for continuous earning.

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What Services Do Hearing Centers Provide?

According to estimates from the Bureau of Labor Statistics (BLS), there are about 13,300 audiologists operating in the United States. While audiologists find themselves employed at several different types of facilities, hearing centers are among the most common.

Hearing centers, as the name might suggest, are places where people can go to receive hearing tests and treatments that will help improve their hearing. Currently, about 15 percent of adults report having hearing difficulties. As a result, many new hearing centers open with each passing year.

hearing

Audiologists are among the most qualified individuals to address tinnitus and other common hearing issues. These individuals have received a formal education, certification, and are familiar with the hearing treatments that have been proven to be the most effective. They are also qualified to properly administer a hearing test—following the test, finding the hearing treatment that best meets your needs should be much easier.

In this article, we will discuss some of the many different services that your local hearing center may provide. Each of these services is designed to help ensure people are hearing at their very best and to potentially increase their quality of life. By understanding which services are likely available, you’ll be able to determine if a trip to a hearing center is right for you.

Hearing Evaluations (Hearing Tests)

Upon your visit to a hearing center, the first thing you’ll probably be asked to do is undergo a series of hearing tests. These tests, which usually take about 60-90 minutes to fully complete, examine multiple different aspects of how you hear. They’ll look at things such as the tones and pitches you can hear, the volumes you are capable of hearing, and whether the hearing between your left and right ears is symmetrical.

Audiometric testing, for example, exposes the listener to a range of hearing frequencies in order to determine if they can hear ordinary conversations. Tympanometry, another type of hearing examination, evaluates the health of the middle ear (which is where the crucial eardrum is located). Your audiologist may also ask a series of questions that will help them recognize the underlying cause of your hearing issues. Once these tests are completed, they will recommend an appropriate treatment plan.

Tinnitus Management

Tinnitus is an incredibly common hearing issue that, contrary to popular belief, can affect people of all ages. Individuals who are suffering from tinnitus will regularly hear buzzing, ringing, and other types of noises, despite the fact that there is no external source making these noises. Managing tinnitus will be incredibly important because tinnitus is often at the core of other hearing issues.

If you are one of the roughly 12 percent of adults who experience tinnitus, a hearing center may be able to help you. In fact, some of the best hearing centers even use a tinnitus-centric approach to treatment. Some common tinnitus treatments include Oticon Tinnitus SoundSupport, Widex Zen Tinnitus Treatment, and Tinnitus Retraining Therapy. Your audiologists may also be able to help you with (or at least make referrals) some of the complications that come with tinnitus, such as sleep disorders, anxiety, and depression.

Hyperacusis Management

Hyperacusis is a hearing condition that causes ordinary people to perceive ordinary sounds (such as a running faucet) as “unbearably loud.” While this condition affects less than 1 percent of the population, it is one that needs to be taken very seriously. Untreated hyperacusis can cause seizures, balance issues, and various other challenges.

Hyperacusis treatment will usually involve trying to “reset” the way the center of the brain perceives (and reacts) to volume. It is a very personal condition that often requires customized treatment plans. While some people with hyperacusis will purchase earplugs or avoid interactions with others, the treatments offered by audiologists are much more permanent.

Hearing Aid Assistance and Live Speech Mapping

Many people require hearing aids in order to hear at their absolute best. However, not all hearing aids are created equally. The hearing aid that makes the most sense for you will depend on the severity of your hearing loss, the symmetry of the hearing loss, and whether you desire to have any special tech features.

Today’s hearing aids include Bluetooth technology, smartphone technology, and many other modern functions. Your audiologist will also help you with a process known as live speech mapping. Live speech mapping makes it easier for people to see the benefits of owning hearing aids and, ultimately, find the hearing aid that is a perfect fit.

Earwax (Cerumen) Management

Excessive earwax is one of the many reasons you may currently be experiencing hearing challenges. Some people naturally produce more earwax (which is also known as cerumen) than others, which will require cleaning and removal. A qualified audiologist will help you make sure your earwax is safely removed without causing any damage to your inner ear canal.

Future Support

While a trip to your local hearing center can be incredibly productive, you may require additional assistance outside of your visit. For example, if your hearing aids begin to experience difficulties or stop working, you will want someone who can help fix them. You may also have questions about your tinnitus or other hearing issues. Most hearing centers will offer some support over the phone. Many will even be willing to make house calls, for an additional cost.

Financial Assistance

One of the most common questions people have is, “Does my insurance cover an audiologist visit?” The answer to this question, as you might expect, will depend on many different things. Some insurance policies are much more extensive than others, meaning that you may need to cover some of the expenses on your own. Fortunately, many top hearing centers offer financial assistance, using programs such as CareCredit.

Conclusion

Hearing centers can help improve the way you hear and experience the world. They offer many different services and can treat many different types of hearing issues (such as tinnitus). If you have recently had difficulties with hearing, scheduling an appointment at a hearing center may be in your best interest.

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How and where to invest your money as a student?

Before we start evaluating the methods in which a student can invest his money, we will start by explaining why is it necessary to start saving from an early age. For the last few decades, the economic market has been going through a tumultuous phase and under no circumstances can we guarantee that the value of money today will remain the same tomorrow. Thus, to steer away from a situation like this, and make all ends meet, a student must start saving from the rags and attempt to grow it through investment. Investing will not simply multiply the funds that you are starting with; it will further enhance your understanding of the market and render strapping strategies to wisely capitalize your resources. In the following section, we will be jotting down the wisest ways of investing your money as a student.

invest your money as a student

  • Invest in assets

Your plan of investing in assets must be a well-calculated one; rather than resorting to materials that are bound to be intervened by technological advancements and will thereby, alter their characteristics over time, a student should opt for assets whose value will increase with time. Additionally, apart from cryptocurrencies, there are no other forms of currencies whose value will rise in the forthcoming years. When you start trading currency, there will always be another individual involved in the mechanism and on some level, you will be asked to compromise with their terms. However, the only mindful path to choose from here would be investing in banks that depend on the commission spreads from the sale and purchase for their revenue. The source of reliability is enough to intrigue the young generation and bear unprecedented benefits for the brokerages conducting the transaction.

  • Shares and equities

Shares and equities refer to your stake in a company; meaning, once you invest in them, you will be granted an equal share in their ownership and voting rights with one vote per share. Once you have invested in, you will start receiving the dividend from the company at least two times a year; although certain firms generate dividends four times throughout a year. The best part about these shares, say for instance in investment casting, is that they will furnish you with the predicted amount once your investment starts growing. Additionally, you will also have access to their income as shares in these companies usually increase and guarantee portions of the increasing dividend. Nonetheless, if you have doubts regarding the results, you can invest in equities that require much smaller amounts and are cheaper to hold.

  • Cash in bank

Lastly, the safest option to invest your money as a student would seemingly be the bank; but investing cash isn’t the most profitable idea given its low rate of return. The interest rates are higher around the inflation which directly reinforces the fact that your money is gradually losing its value. Nonetheless, if you are planning for the long-term ahead, you can either deposit it in the savings account or a fixed deposit account. Keeping your money in the fixed account for at least 4-5 years will generate escalated rates of interest; but, you will not be able to access that stipulated period.

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