Consumers of transportation, entertainment and home rental services, among others, through digital platforms must be prepared to assume an increase in the cost of their bill, because the Government will levy the tax on transfers of industrialized goods and services (Itbis) to foreign companies that are dedicated to being intermediaries to channel these services through digital platforms, warns Germania Montás, economist and former deputy director of the General Directorate of Internal Taxes (DGII).
But who will pay? Itbis: the company or the consumer? Montás explains that the collection of the tax will be paid by the supplier or the user, depending on how the DGII Calculate the proportion of what you are going to tax.
It indicates that what is proposed to be taxed is the use of digital platforms to provide the service; In this case, the tax should be applied to foreign companies, as indicated in the draft of the project of “Regulation of application of the Itbis to digital services from foreign providers” such as Netflix, Google, Uber, airbnb and Facebook, among other applications.
But, if the proportion is calculated based on the totality of the service provided, then that Itbis The consumer or the user who uses the services will be paying it because “all consumption taxes, without exception, are added to the bill so that the consumer pays it,” observes Montás.
The former official clarifies that if the Government approves a regulation to tax all operations, then it will be one more burden for users of services through digital platforms who pay for the service and also for the internet they consume to use them.
Diario Libre consulted the DiDi transport services technology company, which reported that it has maintained an “open and frank” dialogue with the authorities in recent months.
“We held a series of work sessions and made observations on the text that has been submitted for public consultation by the DGII. We are respectful of the legal system, so we are waiting for the publication of the definitive text for the application of the Itbis on the commission for the use of technological platforms in accordance with the best international practices”, specified the intermediary transport company, originally from China.
exemptions
Article 344 of the Tax Code highlights that they are exempt from Itbis financial services, including insurance; pension and retirement plan services; ground transportation of people and cargo; electricity, water and garbage collection; housing rental; of health; educational and cultural; funeral homes and beauty salons and barbershops.
In this sense, digital services are not exempt from taxes, therefore, if the special regulation of the DGIIthe provisions with which taxes will be charged to foreign companies based on the Tax Code and regulation number 293-11, which is in transition to go to the Executive Power, will be applicable.
airbnb
One of the services that has caught the attention of the productive sectors in the country is the short-term rental of real estate, known as short rent, which has increased significantly, according to the Association of Hotels and Tourism of the Dominican Republic (Asonahores). that supports its regulation.
The economist Montás specifies that, in the case of rentals through platforms such as airbnbif he Itbis applies to all the operations carried out through this mechanism, the percentage to be taxed will be applied to the short-rent tenant, because the supplier companies will increase the cost of their service.
He considers that the commission that the company earns for offering the service should be taxed “because, if they tax the entire payment, they would be taxing the rent that is exempt from this type of tax.”
