DR's ITBIS exceeds the regional average by 2.6 points

In the Dominican Republic, the equivalent of the Value Added Tax (VAT) is the ITBIS, with a general rate of 18% and a rate of 16% applied to a smaller group of goods. This places the country among those with one of the highest rates in Latin America. According to data from April 2025, the Dominican rate is 2.6 percentage points higher than the regional average (15.4%) and 5.5 points above the Central American average (12.5%). As the graph shows,…