ITBMS Calculator
Tax on the Transfer of Movable Tangible Goods and the Provision of Services, ITBMS
ITBMS is separate from the Selective Consumption Tax (ISC) and other taxes. Certain products, including alcoholic beverages and tobacco products, may also be subject to selective taxes; these should not be added to the ITBMS percentage shown by the calculator.
Tax calculator needs two values. You can e.g. fill in tax % and price - and get price before tax as result. Price before tax and price are rounded.
You can also choose the tax % by clicking the percentage in the table below.
Panama | |
| special rates | 15% Imports and wholesale and retail sales of tobacco products, including cigarettes, cigars and other tobacco products. 10% Imports and wholesale and retail sales of alcoholic beverages. Also hotel, lodging and other public accommodation services in all forms. |
| standard rate | 7% The standard rate applies to taxable transfers of movable tangible goods, taxable services supplied in Panama and taxable imports where no special rate or exemption applies. It includes, among other cases, commissions for banking and financial services and domestic and international passenger air transport. |
| Past changes: | |
| 1 Jul 2010 | The standard ITBMS rate increases from 5% to 7%. Domestic and international passenger air transport becomes expressly taxable and public hotel and accommodation services become subject to the special 10% rate. A number of exemptions are also amended. Dirección General de Ingresos – ITBMS / Law 8 of 2010 |
Note! The VAT information on this page is general information, not tax advice. The information is not exhaustive. VAT rules include many exceptions and special cases. Check the treatment of your situation in the tax administration's guidelines. Information last checked 1 Oct 2026.
Articles:
VAT rounding: the EU, the UK and other European countries
The EU VAT Directive and the Court of Justice of the European Union leave VAT rounding rules to be decided at national level. National rules vary. In the UK, HMRC allows VAT on B2B invoices to be rounded down to the nearest whole penny.
Roundings in VAT calculation: Mathematically impossible prices?
There are a whole range of VAT-inclusive prices that cannot be mathematically arrived at if the tax is calculated from the VAT-free price. One example is 3.99. These prices are also possible, but then the VAT-free price must be interpreted as rounded.
VAT Gap - How much VAT is left uncollected in EU countries?
9.5% of VAT was left uncollected in EU countries. See the list of EU countries and candidate countries.
In Europe there is VAT - in the US sales tax
In Europe, companies belonging to the production chain account for the VAT paid by the consumer to the state in proportion to their value added. The US sales tax, on the other hand, is billed entirely by the company that made the consumer sale. Sales tax is paid to local operators, not to the state.
Many of today's taxes were already in use in Antiquity. Deciding on taxation has moved from autocrats to parliaments and the level of taxation has risen. In earlier times taxes were used to wage wars, today taxes are used to maintain welfare states.