Fintech boost tax collection from the use of their platforms

Melissa López
April 16, 2021

FinTechs came to facilitate access to billing information of companies in a more accurate and real-time.

The increase in transactions by digital means, the promotion of the use of cards for payments, the super Apps, and of course the neobanks, have resulted in lower use of cash and easier for governments to reduce tax evasion by having the Closest record of all transactions.

In the fiscal context, VAT is one of the highest percentages of evasion as a lower amount of sales is declared than real, in a reality like the current one, companies have been forced to digitize the purchase of their services using platforms digital, whose use will always leave an undeniable trace.

Technology has come to reduce evasions that generate large losses in the country's collection, making it easier for them to be detected and at the same time discouraging them.

Reduced use of cash

FinTechs promote that goal so longed for in Latin America of reducing the use of cash, with the creation of payment gateways that increased even more in times of pandemic.

Mobile devices will increasingly replace the use of cash and in this way not only will fraud against the treasury be reduced, but monetary policy will be more efficient. 

Likewise, the use of credit and debit cards promotes a safer environment, guarantees management transparency, greater traceability of operations, and therefore a greater contribution to the treasury.

This increasingly reduces the informal market since the use of cash makes it easier to leave no trace, avoid controls, avoid issuing invoices so as not to have to pay taxes.

In Costa Rica, the recent tax imposed by the Government on digital media such as Uber, Didi, Netflix, Rapi, among others, reinforces the contribution that technology has come to make to state finances.