VAT Calculator – Dominican Republic

To calculate VAT in the Dominican Republic, enter the subtotal, VAT rate (18%) and calculation type. Click the Calculate button.

Standard VAT Rate: 18%

VAT Amount: RD$0.00

Total Amount: RD$0.00

A VAT calculator is essential to navigate tax transactions for businesses operating in the Dominican Republic. One must understand the value-added tax (VAT) system.

This article presents a simple VAT calculator designed for the Dominican Republic and provides insight into the country’s tax system.

Dominican Republic VAT Calculator

Our VAT calculator simplifies the process of calculating VAT amount and total cost based on subtotals and inputted VAT rates. It includes the following features:

  • User-friendly interface: The calculator provides an intuitive interface for users to enter their subtotal and applicable VAT rates.
  • Real-time calculation: This calculator instantly calculates the VAT amount and total amount, making it a useful tool for businesses and individuals.
  • Standard VAT rate display: At the top of the calculator, the standard VAT rate for the Dominican Republic is displayed, which is currently set at 18%.

How to Use?

  • Enter the subtotal amount (in Dominican Pesos) into the designated field.
  • Input the applicable VAT rate (if different from the standard rate).
  • Select the calculation type, such as Add VAT or Remove VAT.
  • Click the “Calculate” button to obtain the VAT amount and total cost.

Dominican Republic tax system

The tax system of the Dominican Republic is designed to collect revenue to support the government and economic development.

  • Value Added Tax (VAT): The VAT system is a consumption tax that is applied at each stage of the production and distribution chain. In the Dominican Republic, the standard VAT rate is 18%, as shown in our calculator.
  • Income Tax: Individuals and businesses are subject to income tax. Rates vary depending on income level, with progressive taxation for individuals and a flat rate for businesses.
  • Customs Duty: Importers are required to pay customs duty on goods brought into the country. Rates may vary depending on the type of luggage.
  • Property Tax: Property owners are charged an annual property tax, which is assessed based on the value of the property.

Importance of VAT Compliance

Businesses and individuals need to comply with the tax regulations of the Dominican Republic. Regular updates on tax rates and compliance requirements are essential to remain compliant with the law. Read more about the Dominican Republic.

VAT registration threshold

There is no VAT registration threshold in the Dominican Republic. Businesses providing digital services must register for ITBIS (VAT). Providers must establish a permanent presence in the country otherwise ITBIS does not transfer to the Dominican Republic or reimburse. A business that registers for ITBIS purposes in the Dominican Republic is equivalent to a permanent establishment.

What is ITBIS?

The local name of VAT is ITBIS. The VAT standard rate in the Dominican Republic in 2024 is 18%, which applies to all digital services provided via the Internet that are used in the country and provided by non-resident businesses in the Dominican Republic.

Conclusion

Our VAT calculator is a practical tool for businesses and individuals who want to understand the intricacies of the Dominican Republic’s VAT system. For clarity as tax rules evolve, consult a tax professional to comply with Dominican Republic tax laws.