Dominican Republic fails again on VAT foreign digital services

2025 tax reform decree introducing 18% VAT on non-resident platform e-services repealed

The Caribbean island state of Dominican Republic failed again to impost VAT liabilities for foreign providers of digital services via digital platforms for local consumers.

It had implemented on 28 February the obligations from 25 January 2025. But this week, the decree was annulled by a new one, Decree 107-25.

VAT is known as ITBIS (Tax on the Transfer of Industrialised Goods and Services) in the Dominican Republic, and is administered by DGII (Directorate General of Internal Taxes)

The President had struggled at the end of last year to get approval for the modernisation tax reform Bill and had to delay. This latest version has finally clarify that digital services are taxable, and that foreign platforms must register and charge VAT and act as collections agent.

VAT Registration and returns

Suppliers without domicile or residence in the Dominican Republic must register in the National Registry of Taxpayers (RNC) of the DGII in accordance with the procedure for Registration, Administration, Liquidation and Payment of ITBIS established in these Regulations and which will be published through instructions on the official website of the DGII.

The special ITBIS declaration for the provision of services through digital platforms will be made using a special form. This special declaration must be completed and submitted by foreign providers without domicile or residence in the Dominican Republic who offer the services covered by this Regulation. The declaration and payment of ITBIS will be made electronically through the taxpayer’s Virtual Office (OFV) portal. The special ITBIS declaration for foreign suppliers must be submitted within the first twenty (20) days of the month following the month to which the declaration corresponds.

The current VAT rate in the Dominican Republic is 18%.

Follow VAT Calc’s global VAT and GST on digital services tracker for live updates on worldwide reforms.

What digital services are subject to Dominican Republic VAT?

Income from the following services is liable to VAT:

• Content: images; video; text; information; music; films;
• Gaming and games of chance;
• Phone services e.g. texts and ringtones;
• Blogs; magazines or online newspapers;
• Online clubs, including dating and adult content;
• Online intermediation;
• E-learning;
• Automated online technical support;
• Apps
• SaaS or cloud-based software
• Streaming or download software
• Online storage
• Advertising
• Data processing and transmission

Determining if VAT is due

Providers could rely on any of the following to determine if the service was consumed in the Dominican Republic, and therefore VAT due:

• IP address
• SIM card address
• Payment from card registered locally
• Billing address

Filing digital services VAT returns

Compiling VAT or GST return can be complex.  VAT Calc’s single platform VAT Filer can correctly complete any country filings with verified VAT or GST transactional data from our VAT Calculator or VAT Auditorintegrated tools.

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