Costa Rica's Legislative Assembly is considering Bill 21.939, which was received on 5 May 2020. The Bill provides for an extension of the VAT exemption that was provided for basic goods as part of the transition to Costa Rica's new VAT system, which entered into force on 1 July 2019. Under the transition, basic goods are exempted for the first year, and from 1 July 2020, are to be subject to the 1% VAT rate. The Bill would amend the transition to extend the exemption through the second year, to 1 July 2021.