In the Dominican Republic, certain entities are entitled to receive a card that exempts them from paying the Value Added Tax (ITBIS) on industrialized goods and services. Below, we detail the entities that can benefit from this exemption, as well as the importance and proper use of the card.
What Is the ITBIS Exemption Card?
The ITBIS Exemption Card is an official document issued by the Dirección General de Impuestos Internos (DGII) that allows certain entities to acquire goods and services without paying ITBIS. This benefit is regulated by the country’s current legislation and tax policies.
Entities Eligible for the ITBIS Exemption Card
Export Free Zones
Export Free Zones are special areas designated for the production of goods intended for export. These zones are covered under Law 8-90, which grants various fiscal incentives, including ITBIS exemption. Companies operating within these zones can obtain the exemption card to facilitate their operations and enhance competitiveness in the international market.
Members of the Diplomatic and Consular Corps
Diplomats and consuls accredited in the Dominican Republic are also entitled to the ITBIS Exemption Card. This measure reflects international norms of courtesy and reciprocity, allowing foreign representatives to carry out their duties without the burden of ITBIS on local purchases.
Representatives of International Organizations
Representatives of accredited international organizations in the Dominican Republic are also eligible for ITBIS exemption. These organizations play a vital role in development and international cooperation, and the exemption facilitates their operations within the country, allowing them to focus their resources on their missions and objectives.
Proper Use of the Exemption Card
It is essential that the ITBIS Exemption Card be used exclusively for acquiring goods and services stipulated for each beneficiary entity. This means that all purchases must align with the entity’s authorized activities and operational needs.
Current Legislation and Regulations
The use of the card is strictly governed by Dominican laws and regulations. Any misuse of the card can result in penalties and the revocation of the exemption benefit. Therefore, entities must ensure full understanding and compliance with all applicable legal provisions.
Recommendations for Effective Use
- Verify Suppliers: Ensure that suppliers are authorized to accept the exemption card.
- Maintain Proper Documentation: Keep detailed records of all transactions made using the card.
- Stay Updated: Remain informed about any legislative or regulatory changes that may affect the use of the exemption.
Conclusion
The ITBIS Exemption Card is a valuable tool for certain entities in the Dominican Republic, allowing them to operate more efficiently and cost-effectively. However, it is essential that beneficiaries use this privilege responsibly and in accordance with established laws and regulations to avoid legal issues.
EN 
ES