The 2012 worldwide VAT, GST and sales tax guide

D OMINICAN REPUBLIC 183
The above provisions may include measures designed to reduce
the frequency of the filing of ITBIS returns and to simplify other
ITBIS requirements.
Group registration. Although the tax authorities do not apply
group registration, under the Dominican ITBIS Law, the tax
authorities may consider as unique taxpayers entities, individuals,
enterprises or combinations of them, if they transfer or render
ITBIS taxable goods or services and if these activities are controlled
by the same person or persons (individuals, entities or
combinations). If an individual exercises control or administers
several businesses or establishments, the ITBIS imposed is considered
to be the ITBIS of such individual.
Nonestablished businesses. A “nonestablished business” is a
business that has no fixed establishment in the Dominican
Republic. In principle, a nonestablished business must register to
pay ITBIS to the tax authorities if it supplies goods or services in
the Dominican Republic. To register for ITBIS, a nonestablished
business must register with the Chamber of Commerce and the
tax authorities.
The Dominican tax regulations do not provide a reverse-charge
mechanism.
Late-registration penalties. A taxpayer that fails to register for
ITBIS on a timely basis may not deduct tax on goods purchased
by the business that form part of its inventory at the time of registration.
Tax authorities may assess unpaid ITBIS. Penalties and interest
are also assessed for late registration for ITBIS.
D. ITBIS rates
In the Dominican Republic, the standard rate of ITBIS is 16%.
The standard rate applies to all supplies and importations of
goods and to the list of taxable services, unless a specific provision
allows an exemption. In addition, some activities are exempt
activities or zero-rated.
The following table lists examples of exempt goods and services
(this list is not exhaustive).
Examples of exempt goods and services
Live animals
Fresh, refrigerated or frozen meat
Fish for popular consumption or reproduction
Milk, eggs, and honey
Nonprocessed fruit for massive consumption
Decaffeinated coffee
Sugars
Cocoa and chocolate
Certain types of medicines
Certain types of books and magazines
Education services, including theatre, ballet, opera, and dance
Health services
Electricity, water, and garbage collection services
Financial services (including insurance)