The Dominican Republic will not charge Itbis for purchases by foreign tourists in the country

[SKY]

Anyone that has used this in Europe will know how strong this is for tourists purchasing.

The Dominican Republic will not charge Itbis for purchases by foreign tourists in the country

<p>Applies to purchases of products over US$100 The initiative strengthens the competitiveness of the DR as a tourist destination. The Senate of the Republic approved in the first reading last Tuesday, May 17, the bill on the refund of the Tax on the Transfer of Industrialized Goods and...

dominicantoday.com

 

[JD Jones]

I wonder how difficult it will be to request that "refund?"

 

[El Hijo de Manolo]

I wonder how difficult it will be to request that "refund?"

I think the article was poorly translated.

 

[playacaribe2]

I wonder how difficult it will be to request that "refund?"

Before that, how will some of the vendors get/give people the necessary paperwork to get that refund.................and will it be even worth the hassle. Another line at the airport to wait in............................to collect.

If it works like some countries in the EU, the goods/services purchased in the DR must be over $100 at each merchant...............not an aggregate of all your purchases.

I do hope they outsource the process............lest it become another repository for skimmimg/corruption.


Respectfully,
Playacaribe2

 

[MariaRubia]

Not sure if anyone else noticed the report in Dominican Today that the government is passing legislation which will mean that non-residents get ITBIS refunded on purchases.

The Dominican Republic will not charge Itbis for purchases by foreign tourists in the country

<p>Applies to purchases of products over US$100 The initiative strengthens the competitiveness of the DR as a tourist destination. The Senate of the Republic approved in the first reading last Tuesday, May 17, the bill on the refund of the Tax on the Transfer of Industrialized Goods and...

dominicantoday.com

This could be big news for all those who don't have residency, depending on how they implement it. The ITBIS is 18%, so if someone were buying a big ticket item (like a car or a computer) this could add up to a lot of money. My questions are: whether they will refund on things like restaurant and hotel bills, or just on physical goods? And whether the goods have to be exported from DR to qualify, or whether any purchase by a non-resident would count? Ie if you buy a car do you have to physically remove it from the country to get the tax refunded, or do you just have to be non-resident. And finally, will they give you the tax back in cash or how?

If they do give it back in cash, I can imagine it could open a lot of complication. DGII currently owes me the best part of RD$ 1M in ITBIS, which they just give as a credit against future ITBIS, not a refund. If I just raise an invoice for the sale of something to a tourist, charge RD$ 1M on the invoice, they could then reclaim the ITBIS in cash and so get a refund.

 

[SNH]

Colombia already does the same. You do not pay the 19% and if you do you save your receipts and get a refund.

 

[SKY]

This has been in effect in Europe for 40 years that I know of. And you can't buy a car on it. It is for shopping in many stores.

 

[Ecoman1949]

This has been in effect in Europe for 40 years that I know of. And you can't buy a car on it. It is for shopping in many stores.

The UK had this for years. Travelled around the UK in the 70’s and 80’s. I always filed for refund at the UK departure airport before heading home. Had to jump through a few hoops to get the refund. Don’t know if they still offer the retail tax refund anymore.

Refunding the retail tax to non residents is not an easy thing to do. The development and implementation of the DR E- ticket had many growing pains. Imagine the same will happen ITBIS refund procedures.

 

[william webster]

Didn't/Doesn't Ontario offer this?

A kiosk at the border where you submit your receipts for reimbursement ?

 

[Ecoman1949]

Didn't/Doesn't Ontario offer this?

A kiosk at the border where you submit your receipts for reimbursement ?

Can’t remember Bill. I do remember reciprocity agreements in place for the taxes on new and used vehicles. Pay the tax in one province, get credit for the payment in your home province.

 

[NALs]

I wonder how difficult it will be to request that "refund?"

This Dominican guy back in January 2022 went through something similar while exiting Spain. If that's a sign of this to come, well then...

Starts at 3:58.

Keep in mind that that is in Spain, a developed and organized country. Something the DR is not, but theoretically it strives to become like them.

 

[CaribeDigital]

This has been in effect in Europe for 40 years that I know of. And you can't buy a car on it. It is for shopping in many stores.

Right. I remember a flight Frankfurt-Bejing full of middle-class Chinese who go to Europe for shopping fun.

Here, however, I wonder what exactly would a tourist buy (over $100) what he could not get in his own country for a comparable price, even if you take our ITBIS?
Tourist spend money here on excursions to Saona, on girls, surf-classes, transport, dinners - none of these would apply.
Another question: could shopping in the DR be considereed fun?

One ITBIS that comes to my mind is the ITBIS for the hotel bill. Would that apply?

 

[Sol09]

Right. I remember a flight Frankfurt-Bejing full of middle-class Chinese who go to Europe for shopping fun.

Here, however, I wonder what exactly would a tourist buy (over $100) what he could not get in his own country for a comparable price, even if you take our ITBIS?
Tourist spend money here on excursions to Saona, on girls, surf-classes, transport, dinners - none of these would apply.
Another question: could shopping in the DR be considereed fun?

One ITBIS that comes to my mind is the ITBIS for the hotel bill. Would that apply?

It would not apply to the hotel bill:

"Likewise, it clarifies that the Itbis will be returned to tourists who make purchases of nationally produced or imported goods greater than 100 dollars."

But I agree with you, I don't see tourists coming here to go shopping.

I was able to get my taxes returned in Cancun when I was there and bought expensive handbags, sunglasses, perfumes. The process entailed keeping the receipts, bringing them to an office at the shopping plaza for validation, and then getting the money returned at the airport after security.