Returning Sales Tax To Tourists

[NALs]

In today's El Caribe (May 19) there is an article about a new law project currently being studied and has not been approved yet. This law would return the ITBIS paid by any tourists that have been in the country for less than 90 days (3 months). It has been submitted for study by three senators which include Omar Fernández, son of Leonel Fernández (ex-president).

The tourist will be required to verify their tourist status and that they left the country through one of the airports, seaports or terrestial official entry/exit point along the border. They must show receipts of everything they buy at designated stores while in the country and it must include their passport number. The government already has the information of everyone that enters and leaves through the airports (where most of the tourists enter/leave the DR) and the seaports. The passport number should match the exit record the DR government gets electronically the moment the passport is scanned at Immigration or passport info is entered by a Migración agent in the computer at the airport/seaport. Purchases must be done in debit/credit cards from a foreign country or in cash in the designated businesses.

The articles that will be included for the ITBIS devolution (if the law project is voted in favor by the Senate and the Chamber of Deputies) will be:

- Foods and drinks for export (rum, Dominican sweats, Mamajuana, etc)​

- Local Art (faceless dolls, etc)​

- Jewelry​

- Clothes (shirts, pants, etc)​

- Lingere​

- Leather Goods​

- Furniture​

- Perfume/Cologne​

- Etc (to be specified by the new law).​

They can be domestically made or exports. (Personally, I think ITBIS devolution should be full on domestic items and partial on imports, maybe half of the ITBIS paid, or to limit ITBIS devolution to domestically made products only. That would include some products tourists will think are imports such as the Coca-Colas, which every Coca-Col bottle/can sold in the DR is actually made at their factory in Santo Domingo. Someone that doesn't know that may think they are imports from the USA.)

Page 8.

The purpose is to incetivize tourist to buy more while on vacation.

 

[Buffness]

The purpose is to incetivize tourist to buy more while on vacation.

An additional layer of unnecessary procedural complexity and bureaucracy for tourists perhaps ?🤔🤔…

Wait …who comes to DR to buy “Lingere “ , “Furniture “ …and “Perfume/Cologne “ ? They may come for the …. “Dominican sweats” 🥵…...”faceless dolls” …..and the…… “Etc” 😬…. but do tourists usually make ‘high value/high ITBS ‘ purchases in DR ? Aren’t there limits to what you can buy overseas without having to pay additional taxes in your country ?🤔

Also , any “Proceso de devolución de dinero” is never easy and fun in DR😖 ….and I doubt that a new ‘ITBIS devolution’ process would encourage our Brasileños 🇧🇷…… for example…to buy more than they already do….who needs ‘government ‘ and ‘taxes’ in their Dominican vacation ?

……but if DR thinks it will work for them….then Dale ! …ya veremos .🤷……

 

[Peterj]

Dominican government returning money.....I must be in the Clown Bin.

 

[Fulano2]

An additional layer of unnecessary procedural complexity and bureaucracy for tourists perhaps ?🤔🤔…

Wait …who comes to DR to buy “Lingere “ , “Furniture “ …and “Perfume/Cologne “ ? They may come for the …. “Dominican sweats” 🥵…...”faceless dolls” …..and the…… “Etc” 😬…. but do tourists usually make ‘high value/high ITBS ‘ purchases in DR ? Aren’t there limits to what you can buy overseas without having to pay additional taxes in your country ?🤔

Also , any “Proceso de devolución de dinero” is never easy and fun in DR😖 ….and I doubt that a new ‘ITBIS devolution’ process would encourage our Brasileños 🇧🇷…… for example…to buy more than they already do….who needs ‘government ‘ and ‘taxes’ in their Dominican vacation ?

……but if DR thinks it will work for them….then Dale ! …ya veremos .🤷……

Again showing they have no clue. Who for Gods sake buys leather goods or furniture in the DR.
Oh yeah let’s get some quality original men’s shoes in the DR?
“ Does our DR purchased sofa really fit in hand luggage?”

 

[NALs]

Again showing they have no clue. Who for Gods sake buys leather goods or furniture in the DR.
Oh yeah let’s get some quality original men’s shoes in the DR?
“ Does our DR purchased sofa really fit in hand luggage?”

There are some traditional Dominican furnitures that can be dissasembled for delivery abroad and once in the final destination they are assembled again. For example, the traditional Dominican rocking chairs.

 

[william webster]

You could furnish your apartment... stay within the time limit and cash in on the way out

Just present the facturas

 

[MariaRubia]

Well, I'm thinking that those of us who live here could come in and buy something, leave within 30 days, get the ITBIS refunded, then bring it back in. It would be worth doing on a portable high-value item, for example a laptop.

I do think there are some tourists who spend a fortune on stuff here, probably those who stay in Casa de Campo or Cap Cana and who go to some kind of art gallery, or some top of the line cigar shop. I know these aren't the majority but there will be some that this could help.

 

[MariaRubia]

You could furnish your apartment... stay within the time limit and cash in on the way out

Just present the facturas

I think you need to also produce the items to get the refund. Surely you'd need to do that wouldn't you?

 

[NALs]

Well, I'm thinking that those of us who live here could come in and buy something, leave within 30 days, get the ITBIS refunded, then bring it back in. It would be worth doing on a portable high-value item, for example a laptop.

I do think there are some tourists who spend a fortune on stuff here, probably those who stay in Casa de Campo or Cap Cana and who go to some kind of art gallery, or some top of the line cigar shop. I know these aren't the majority but there will be some that this could help.

Those that live illegally in the DR on a tourist card/visa may be able to do this.

Then are any expats that has to pay an overstay fee at the airport, yeup illegal immigrant from the moment the tourist card expired to the day you leave. The fee basically undo the illegality, but until it's paid you are beyond the limits of your approved "visit" and in the DR without permission. Also, no one is suppose to work in the country on a tourist card/visa since technically this is prohibited, so anyone with a tourist card/visa that works in the DR do so illegally.

Other than that, it would be impossible for an expat living legally in the DR to be given back the ITBIS he paid for several goods/services. An expat with a residencia, with any of the other non-tourist visas, and those with Dominican citizenship are not eligible. A person needs to be on a tourist card/visa and leave the DR within 90 days after entering in the country. I think 90 days is the limit, beyond that if you don't get an extension you are not legal in the country and not eligible for the ITBIS devolution.

 

[SantiagoDR]

Hold the plane !

I'm at the immigration desk getting my "EXIT" stamp and waiting for my ITBIS refund.

 

[RDKNIGHT]

oh well I'm sure this will turn into the over stay topic that's been running a muck here for 20 years

 

[MariaRubia]

Those that live illegally in the DR on a tourist card/visa may be able to do this.

Then are any expats that has to pay an overstay fee at the airport, yeup illegal immigrant from the moment the tourist card expired to the day you leave. The fee basically undo the illegality, but until it's paid you are beyond the limits of your approved "visit" and in the DR without permission. Also, no one is suppose to work in the country on a tourist card/visa since technically this is prohibited, so anyone with a tourist card/visa that works in the DR do so illegally.

Other than that, it would be impossible for an expat living legally in the DR to be given back the ITBIS he paid for several goods/services. An expat with a residencia, with any of the other non-tourist visas, and those with Dominican citizenship are not eligible. A person needs to be on a tourist card/visa and leave the DR within 90 days after entering in the country. I think 90 days is the limit, beyond that if you don't get an extension you are not legal in the country and not eligible for the ITBIS devolution.

There are a few who come and go, have a second life here and always go before the 90 days is up. I think Aarhus or Johne fall into that category, can't remember which one. But I agree it's the exception rather than the rule.

 

[william webster]

I think you need to also produce the items to get the refund. Surely you'd need to do that wouldn't you?

and if you bought a sofa or bed ?
Produce that ?

Programs like this exist between USA & Canada...... just the receipts , not the items are needed to collect

 

[Kipling333]

I have used this tax refund system in Thailand and Singapore and saw it in use at Terminal 5 at Heathrow before the scheme was closed down. I have also seen people try to use the system in Australia and give up. Broadly speaking the schemes have sets of rules that may include a minimum amount , in Australia it is $300, tax refunds only on certain goods ,the goods must be sighted before you check in , you must produce invoices and receipts, not just a stamp PAID, and then you must fill in lengthy government forms. In Thailand and in Singapore the lines of people waiting at the refund office at the airport are two hours plus long. Of course nowhere that I know of do you get cash back but the refund will be credited to your nominated credit card supplier.
In the DR with multiple airports and cruise terminals ,there would have to be all the government officials at all of them and I imagine the cost of giving back a refund as well as the loss of tax revenue would not be worth the effort because the DR is a destination mainly for sun loving holiday makers with absolutely no thoughts of trudging through malls looking for duty refundable goods. In other countries that sell themselves as shopping havens ,eg Singapore, if this tax refund scheme was not in place ,maybe people would go to competing shopping haven countries. In the UK it was a wonderful scheme for women wanting to buy furs and tailored made evening dresses and for men it was wonderful to buy expensive clothes in Saville Row and in Jermyn Street but the UK Government closed the scheme down.

 

[chico bill]

Well, I'm thinking that those of us who live here could come in and buy something, leave within 30 days, get the ITBIS refunded, then bring it back in. It would be worth doing on a portable high-value item, for example a laptop.

I do think there are some tourists who spend a fortune on stuff here, probably those who stay in Casa de Campo or Cap Cana and who go to some kind of art gallery, or some top of the line cigar shop. I know these aren't the majority but there will be some that this could help.

Or get a tourist to buy you a new washing machine as an example.

But seriously this is a dumb idea, no it's beyond dumb.

First they can not keep track, two it would be abused, 3 tourists aren't even expecting this. And large ticket items would be laundered - heck they could coordinate with the Jet Blue regulars and buy them a few beers take them to the appliance store get a new stove and refrigerator and then give them a Dulce Secretos gift card as payment for the straw-man purchase.

Maybe the putas could get their goods tax free too, just cozy up to an extranjero on holiday.

I thought tourism was at an all time record and DR economy is one of the best in the Caribbean - are they having trouble attracting tourists now because of high sales taxes ?

 

[PJT]

This is the creation of an unneeded hack filled bureaucracy within a bureaucracy. Can it be expected there will be powerful citizens abusing the system to get taxes back on large purchases?


Regards,

PJT

 

[Kipling333]

Yes, of course it is a dumb idea and yes,the bureaucracy has increased to an extent that this is a plan to justify their existence and yet more bureaucracy. The DR is not a country where people come to buy things and never will be so there is absolutely no need to refund the much needed sales tax money. How many people are going to suddenly come here to buy a rocking chair here to save 18% . #5 .

 

[Fulano2]

Yes, of course it is a dumb idea and yes,the bureaucracy has increased to an extent that this is a plan to justify their existence and yet more bureaucracy. The DR is not a country where people come to buy things and never will be so there is absolutely no need to refund the much needed sales tax money. How many people are going to suddenly come here to buy a rocking chair here to save 18% . #5 .

Furniture is rubbish here, nobody will buy an expensive watch here nor overpriced clothing. Bad idea.

 

[Rumble2005]

I know this thread is not about me but as it pertains to me:
This return of ITBIS does squat for myself and my wife.
99% of ITBIS that we pay is in restaurants. If we cannot get refunds on those receipts this is of close to zero consequence for us.

 

[Father Guido]

good news, as I regularly travel to the DR to furnish my homes in Kauai, Knob Hill, Malibu, Vale, penthouses overlooking Central Park, Fisher Island, and the Vineyard, and of course all my colognes and leather clothes are purchased here, I also decorate my homes with fine art from Boca Chica Beach Vendedores, and of course all the bars in my houses are stocked with the finest aged mamajuana