Extract from Guzman Ariza's
Overview on Dominican Tax Law:
Tax on the Transfer of Industrialized Goods and Services (ITBIS)
The ITBIS is a value-added tax applicable to the transfer and importation of most goods, and to most services (Art. 335). The rate of the ITBIS is 16% (Art. 341). For imports, the ITBIS is charged on the CIF value of the goods plus applicable duty (Art. 339).There are many exemptions to the ITBIS tax (Arts. 342 and 343), among them, the following:
* exported goods
* basic foodstuffs
* medicines
* fuels
* fertilizers
* books and magazines
* educational materials
* financial services
* transportation services
* home rentals
* utilities
* educational and cultural services
The 16% ITBIS must be added to every bill for goods and services that are not exempt. The individual or entity receiving the ITBIS must disburse it to the DGII within the first 20 days of the following month (Art. 353). Noncompliance is subject to a 10% surcharge for the first month and 4% for each month thereafter, in addition to 2.58% interest for each month or fraction of a month (Art. 252). From the total ITBIS received, the individual or entity is allowed to deduct any ITBIS paid to suppliers, customs, etc. (Art. 346).
Alfredo
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What is ITBIS?
