Navigating Shopify Payments & Local Taxes: The Tilopay Challenge in Costa Rica

Hey everyone, your Shopify community expert here, diving into a really important discussion that recently popped up. We're always talking about making e-commerce smoother, but sometimes, especially when you're operating in specific regions, things can get pretty complicated. That's exactly what's happening for some of our fantastic store owners in Costa Rica, and it's a situation that truly highlights the unique challenges of international selling.

A fellow merchant, cuaderno_azul, recently brought a significant issue to the community's attention regarding payment processing in Costa Rica, and it's something many of you might be experiencing or could learn from. It boils down to unexpected tax retentions by their payment gateway, Tilopay, which is significantly impacting their bottom line.

The Costa Rican Payment Gateway Conundrum

Let's set the scene. As many of you know, Shopify Payments, our integrated solution that makes things so seamless for merchants in many countries, isn't currently available in Costa Rica. This means store owners there have to rely on external payment gateways to process transactions.

According to cuaderno_azul, Tilopay has emerged as a go-to option because it's one of the few gateways that integrates directly with Shopify's checkout and allows transactions in local currency, colones. Sounds good so far, right? Well, here's where the plot thickens.

Unexpected Tax Retentions: A Deep Dive into the Issue

Our merchant reported that Tilopay has started applying significant retentions on every card sale: 5.31% for IVA (Value Added Tax) and 1.76% for Renta (Income Tax), totaling a hefty 7.07%. Now, this is where it gets particularly frustrating. cuaderno_azul is registered under Costa Rica's "Régimen de Tributación Simplificada" (Simplified Tax Regime), and Hacienda (the Costa Rican tax authority) has officially confirmed that their retention factor for both IVA and Renta should be 0%.

Naturally, they reached out to Tilopay for clarification. Tilopay's response? They're applying these retentions based on guidelines from the "Dirección General de Tributación" (General Directorate of Taxation) since May 27, 2026 (yes, 2026, which seems like a typo and likely meant 2023 or 2024, but that's what was shared), and they stated they couldn't modify the factor individually. This is a classic case of conflicting information and a lack of clear resolution for the merchant.

The Real Cost of Doing Business in Costa Rica

When you add these new retentions to the existing costs, the numbers become quite eye-opening. Let's break it down:

• Tilopay's published fee: 4.25% + US$0.35
• Shopify's external gateway fee (for Basic plan): 2%
• The new Tilopay tax retentions: 7.07%

Totaling these up, a merchant on the Shopify Basic plan could be looking at an approximate 13% of each sale going towards fees and retentions! To put that into perspective, a Shopify store in the US using Shopify Payments Basic typically pays around 2.9% + US$0.30 per transaction. That's a massive difference, and it truly underscores the financial burden this puts on Costa Rican businesses trying to thrive online.

What This Means for You & How to Make Your Voice Heard

If you're a Shopify merchant in Costa Rica, this situation is likely hitting you hard. It's not just about the numbers; it's about the uncertainty, the conflicting information, and the feeling that you're being unfairly penalized despite following the rules. This kind of friction can really stifle growth and make it tough to compete.

cuaderno_azul did exactly what we encourage in the community: they shared their experience and reached out to Shopify. Shopify's recommendation is crucial:

Your Actionable Steps:

1. Contact Shopify Support Directly: If you are affected by these Tilopay retentions, reach out to Shopify's support team via chat.

2. Use Your Store Account: Make sure you contact them from the account associated with your Shopify store. This ensures your feedback is properly logged and linked to your business.

3. Share Your Specifics: Clearly explain your situation, including your tax regime status and the retentions Tilopay is applying. Reference this community discussion if you like.

The more merchants who report this issue directly to Shopify, the clearer the picture becomes for them, and the more leverage they have to potentially engage with Tilopay or explore alternative solutions for the region. It's about collective impact, and your voice truly matters.

This situation is a powerful reminder that while starting a Shopify store opens up incredible global opportunities, navigating local payment gateways and ever-changing tax regulations can be complex. It's vital to stay informed, scrutinize your payment processor agreements, and actively participate in community discussions like these. By sharing experiences, we can collectively push for better, fairer solutions for all merchants, no matter where in the world you're selling.

Let's keep this conversation going. If you're in Costa Rica and have experience with Tilopay or other payment gateways, jump into the original thread and share your story. Your insights could be the missing piece of the puzzle!