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Tax

the Dominican Republic ITBIS calculator

Add or remove the Dominican Republic ITBIS at the rates in force.

Reviewed by SolucionesAhora.com How we verify

Calculator inputs

What do you want to do

Only if you chose “other rate”

Results

Enter your values and press “Calculate” to see the result.

Official source: Dirección General de Impuestos Internos (DGII) ↗

In short

What it calculates
Add or remove the Dominican Republic ITBIS at the rates in force.
Formula used
Add: total = net × (1 + rate ÷ 100)
Example
A product priced RD$1,000 before tax, at the standard 18 % rate:

the Dominican Republic ITBIS calculator

In the Dominican Republic the indirect tax on consumption is ITBIS (Impuesto sobre Transferencias de Bienes Industrializados y Servicios), with a standard rate of 18%.

Dominican ITBIS is charged at 18% generally, with 16% retained for certain dairy derivatives, coffee, fats, sugars and cocoa. Financial, education and health services fall outside the tax.

This calculator works both ways: it adds the tax to a price without it and also breaks it out of a final price.

How it works

Enter the amount, choose whether to add or remove the tax and pick the rate. The rates available in the Dominican Republic are: standard 18 % and reduced 16 %.

If you need a rate other than those listed, choose “other rate” and type it in.

Formula

Add: total = net × (1 + rate ÷ 100)

Remove: net = total ÷ (1 + rate ÷ 100)

Tax = total − net

Worked example

A product priced RD$1,000 before tax, at the standard 18 % rate:

ITBIS amount: RD$180
Final price: RD$1,180

The other way round, starting from RD$1,180 tax included, the base is RD$1,000 again.

Explanation

ITBIS: the local name for the tax

Impuesto sobre Transferencias de Bienes Industrializados y Servicios. The acronym appears on every Dominican invoice and is how everyone refers to the tax, the tax authority included.

18% standard and 16% on certain foods

A specific group of products, including certain dairy items, coffees, fats, sugars and chocolates, is taxed at the reduced 16% rate. All other taxable goods and services are at 18%.

The NCF: no credit without it

The Número de Comprobante Fiscal is the sequence authorised by the DGII that identifies each document. An expense without a valid NCF cannot be supported before the tax authority, and there are several receipt types depending on the recipient: final consumer, tax credit, governmental or special regime. Asking for the wrong type voids the deduction.

Migration to electronic invoicing

The Dominican Republic has rolled out the electronic tax receipt in phases, starting with large taxpayers. The NCF continues to exist within the electronic format.

Frequently asked questions

Which ITBIS rates apply in the Dominican Republic?

The rates built into the calculator are: standard 18 % and reduced 16 %. Which one applies to a given product or service is set by the Dominican Republic legislation; if in doubt, check with la Dirección General de Impuestos Internos (DGII).

How do I remove ITBIS from a final price?

Choose the option to remove the tax and the calculator divides the final price by one plus the rate. Subtracting the percentage from the final price gives the wrong answer.

What is an NCF?

The Número de Comprobante Fiscal, the DGII-authorised sequence identifying each invoice. Without a valid NCF you cannot support an input tax credit.

Which products are taxed at 16%?

A specific list including certain dairy products, coffees, fats, sugars and cocoa derivatives. Everything else is at 18%.

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