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Countries › Dominican Republic › Guide › 6. Taxes › ITBIS, the Dominican value added tax: 18%, 16% on listed goods, zero rated exports and monthly filing

ITBIS, the Dominican value added tax: 18%, 16% on listed goods, zero rated exports and monthly filing

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Last verified: 2026-10-30 · Status: Changing

ITBIS is charged at 18% on the transfer of industrialized goods, imports and services, with a 16% rate on a short list of foods and zero on exports. Most financial, health, education, residential rent and ground transport services are exempt, and many basic foods are too. The return and payment are due within the first 20 days of the next month, even if nothing is payable.

USD figures use the Banco Central de la República Dominicana reference selling rate of RD$60.8594 per US dollar for 28 October 2026, the latest row in its published rate file on the verification date, rounded to the cent.

Key facts

ITBIS standard rate18 %Ley 253-12 art. 23, as of 2026-10-30 · in force
ITBIS reduced rate on listed goods16 %Ley 11-92 art. 345 paragraph II, as of 2026-10-30 · in force
Exports0 %Ley 11-92 art. 342, as of 2026-10-30 · in force
Monthly return and payment20 day of next monthLey 11-92 art. 353, as of 2026-10-30 · in force
Import baseCustoms value plus all import taxes baseLey 11-92 art. 339 numeral 2, as of 2026-10-30 · in force
RegistrationNo threshold in art. 352; within 30 days of starting taxable activity ruleLey 11-92 art. 352, as of 2026-10-30 · in force

The rule

1. ITBIS taxes transfers of industrialized goods, their import and the provision and leasing of services.Ley 11-92, Código Tributario, art. 335, 1992-05-16 official text · verified 2026-10-30
2. The standard rate is 18%, as DGII confirms under paragraphs I and II of art. 23 of Ley 253-12.
Example: Sale RD$1,000,000: ITBIS RD$180,000. / Sale US$16,431.32: ITBIS US$2,957.64.Ley 253-12 art. 23, applied by DGII, art. 345, 2012-11-09 official text · verified 2026-10-30
3. A reduced schedule covers yogurt, butter, coffee, edible oils, margarine, sugar and cocoa and chocolate items, shown in the code at 16% from 2016.Ley 11-92, Código Tributario, art. 345 paragraph II, 2012-11-09 official text · verified 2026-10-30
4. Exports are zero rated, and exporters can deduct the ITBIS on inputs from any other tax obligation, with any balance refunded by DGII. Mixed taxpayers use a proportion of exports to total operations.Ley 11-92, Código Tributario, art. 342, 1992-05-16 official text · verified 2026-10-30
5. Goods listed in art. 343 are exempt, including live animals, fresh meat, milk, eggs, fresh produce, cereals, educational books and notebooks. Ley 30-26 added paving asphalt products, ambulances, refuse trucks and fire trucks.Ley 11-92, Código Tributario, as amended by Ley 30-26, art. 343, 2026-06-18 official text · verified 2026-10-30 · changed: Ley 30-26 art. 36 and art. 37 added listed tariff lines and also exempted those vehicles from duties.
6. Inputs used directly to produce listed goods are exempt if bought by the producer, and Ley 30-26 added milk, water and pasta lines to that list. If the producer paid ITBIS on those inputs, it can deduct it in the period.Ley 11-92, Código Tributario, as amended by Ley 30-26, art. 343 paragraphs III and V, 2026-06-18 official text · verified 2026-10-30 · changed: Ley 30-26 art. 38 and art. 39.
7. Exempt services are financial services including insurance, pension plans, ground transport of people and cargo, electricity, water and refuse collection, housing rent, health, education and culture, funeral services and beauty salons.Ley 11-92, Código Tributario, art. 344, 2012-11-09 official text · verified 2026-10-30
8. Taxpayers deduct ITBIS paid to local suppliers and at customs in the same period if supported by the required documents. Mixed use is deducted in proportion to taxable sales. ITBIS on goods that become part of a Category 1 building is never deductible.Ley 11-92, Código Tributario, art. 346, art. 347, art. 349 and art. 336 paragraph, 1992-05-16 official text · verified 2026-10-30
9. Excess credit carries forward. Exporters can request a refund or offset within six months, and if DGII does not answer in two months the silence counts as approval for offset against any tax except amounts withheld for third parties.Ley 11-92, Código Tributario, art. 350, 2012-11-09 official text · verified 2026-10-30
10. The tax period is the calendar month, and the return is due within the first 20 days of the month even if nothing is due. Registration is required within 30 days of starting taxable activity.Ley 11-92, Código Tributario, art. 353 and art. 352, 1992-05-16 official text · verified 2026-10-30
11. Customs collects ITBIS from informal importers, those not registered in the RNC with an activity subject to ITBIS, on the taxable base plus 30% gross value added. Someone who later becomes a taxpayer can credit the amount in non time barred periods.Ley 11-92, Código Tributario, as amended by Ley 30-26, art. 354-1, 2026-06-18 official text · verified 2026-10-30 · changed: New perception regime added by Ley 30-26 art. 34.
12. Goods moved from the national territory to an industrial free zone are treated as exports, and goods moved from a zone to the territory as imports.Ley 11-92, Código Tributario, art. 357, 1992-05-16 official text · verified 2026-10-30
LineAmount
Taxable salesRD$5,000,000
ITBIS charged at 18%RD$900,000
ITBIS on local purchasesRD$350,000
ITBIS paid at customsRD$200,000
ITBIS withheld by customersRD$50,000
Payable by day 20RD$300,000

Monthly computation

Worked example

  • An importer pays customs value of RD$1,000,000 (about US$16,431.32) with 14% duty of RD$140,000 (about US$2,300.38). The ITBIS base is RD$1,140,000 (about US$18,731.70) and the ITBIS is RD$205,200 (about US$3,371.71), deductible on the next return.

Step by step

  1. Register in the RNC within 30 days of starting.
  2. Issue fiscal receipts showing the tax separately.
  3. Keep separate records for taxable and exempt sales.
  4. File the monthly return on form IT-1 by day 20, even at zero.
  5. For exporters, request refund or offset within six months and track the two month response window.

Common traps

  • Commercial rent is taxed. DGII confirms that premises, offices, warehouses, villas and tourist apartments are not housing.
  • ITBIS on building costs that become Category 1 assets is a permanent cost.
  • The compiled art. 345 still shows 16% from 2015 in its main text. DGII states 18% is the rate in force.
  • Financial services are exempt, so banks and insurers carry unrecoverable input ITBIS.

Sources

Related pages

Related: Dominican Republic country profile · live dashboard · central bank and release calendar · our posts on X · where Argentina is involved, see The Argentine Thread guide

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