Panama levies movable goods and services transfer tax (Impuesto de Bienes Muebles y Prestacion de Servicios - "ITBMS") which is similar to VAT.
ITBMS Taxable Transactions
ITBMS is levied on the sale, lease or transfer of goods or services with the exception of intangibles.
ITBMS Standard Rate
The standard ITBMS rate is 7%.
ITBMS Reduced Rate(s)
The following special rates apply; 10% for hotel accommodation and alcohol and 15% for tobacco.
ITBMS Exempt Transactions
Food, medicine, medical services and crude oil are exempt from ITBMS in Panama.
ITBMS Registration Threshold
Registration is compulsory for businesses with monthly turnover exceeding US$3,000 or annual turnover exceeding US$36,000.
ITBMS Filing & Payment
ITBMS returns must be filed monthly.