DGII retains 2% on all credit and debit card purchases

[M4kintosh]

So, credit cards only? I rarely use my US credit card here but I do use my DR debit card here a lot. Never seen the extra 2% on my receipts or bank statements(?).

It's in all debit/credit transactions. This is a info for merchants. Customers don't see it visible on their final invoice.

The 2% is an "anticipo tax" that's paid automatically in every transaction directly to the DGII and managed through the credit card processors.

 

[M4kintosh]

The 2% fee isn't new. It's been for 20 years. I have a client (retailer) that he receives its CC statement from Cardnet, and they already deducted from its Visa/Mastercard sales every month, alongside the 5% merchant fee from Cardnet and the taxes from it for the Gov.

The ones who started spreading the news (withouth scrutinity or knowing the law) were digital local media like 7Dias, without explanation or an official statement from the source (DGII)

The DGII had to make a Twitter official post trying to explain this.
View attachment 10798

please see the graphic the DGII posted @cavok they explain it in a very simple way.

 

[SKY]

Apparently this is NOT charged to the consumer. I was in two Supermarkets today and carefully checked the bills paid with a card for this. I found nothing..............

 

[M4kintosh]

Apparently this is NOT charged to the consumer. I was in two Supermarkets today and carefully checked the bills paid with a card for this. I found nothing..............

It's in all debit/credit transactions. This is a info for merchants. Customers don't see it visible on their final invoice.

The 2% is an "anticipo tax" that's paid automatically in every transaction directly to the DGII and managed through the credit card processors.

I already explained this to @cavok, @SKY. This 2% isn't view by consumers. Instead is a charge made to merchants via credit card processors, mandated by DGII since 2004.

 

[Father Guido]

some restaurants I go to will omit the ITBIS and Ley if you pay in cash to avoid paying CC fees

 

[MariaRubia]

Just in case for those who don't understand. The DGII has always had a RETENTION of 2% of the ITBIS on credit card transactions. The ITBIS is 18%. When you run a card through a cardnet machine, you get charged the first 2% immediately. This basically forces the merchant to pay the remaining 16% to DGII since they have the 2% they know what to expect for the remaining 16%. When you complete your IT1 monthly declaration, you declare the full 18% and then you use the 2% that they've already charged you as a credit, so you pay the 16% difference.

For hotels and restaurants it's more complicated as the 10% Propina Legal isn't subject to ITBIS, but on some cardnet machines it calculates the 2% incorrectly and it takes about a million calls to DGII and to the cardnet provider to get this sorted out. Oh the joys.

The news is that they didn't use to do the 2% retention on small businesses, now they are starting.

Nothing should change from a consumer's point of view, the 2% was only ever being charged to make sure the retailer reported the full 18% and paid their full ITBIS payable. This is the reason that a lot of companies want to be paid by bank transfers or cash (DGII can't see either of these transactions and most companies have several bank accounts).

 

[MariaRubia]

some restaurants I go to will omit the ITBIS and Ley if you pay in cash to avoid paying CC fees

I would suspect these aren't in Santo Domingo. Places used to try that in SD but now even the Colmados have to report sales and pay ITBIS, even the Chinese places have to pay.