According to the Ministry of Finance, the consumption of water above 30 cubic meters per month, and that of electricity equal to or less than 280 kW/h every 30 days, will be exempt from the payment of the Value Added Tax (VAT); nevertheless, the associated services would pay 13%.
The Law of Strengthening of Public Finances contemplates exemptions for specific consumptions in billing of aqueduct and energy in residential rate, however, it does not contemplate exemptions to the items that accompany collection of these services such as: Sewerage, Hydrants, Water Rate in water, as well as Demand, Public Lighting, Variable Fuel Cost (CVC) in energy, according to Laura Castro, Director of Customer Service and Marketing of the Public Services Company of Heredia (ESPH).
The institution sent a query to the Treasury to clarify the point, but while the situation is clarified, VAT will be applied on all invoices, regardless of consumption, to the items mentioned above, until there is a different interpretation of the authorities.
In both services, the increase would be about ¢2 thousand, according to a study prepared by the ESPH.
According to the company, close to 15% of its subscribers in the drinking water service and 40% in the Energy service exceed the range established by the Ministry of Finance for the collection of VAT.