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Panama Tax Information

7% ITBMS

ITBMS is 7% (10% for alcohol/tobacco). No income tax on foreign income. RUC required.

Auto Mechanic Services to Invoice

  • Oil change
  • Brake service
  • Engine repair
  • Transmission
  • Diagnostics
  • Tire service
  • A/C repair

Invoice Requirements in Panama

RUC number
DGI registration
Client RUC
Invoice number
ITBMS (7%)
Total in PAB/USD

Payment Terms

Due upon completion. Large repairs may require deposit. Mechanic's lien applies.

Contado15 días30 díasCrédito

Payment Methods in Panama

Bank TransferBanco GeneralBanistmoCredit CardCash USD

Auto Mechanic Invoice Tips

  • List parts with part numbers
  • Separate labor charges
  • Include vehicle info
  • Note mileage
  • Document warranty terms

Frequently Asked Questions

What tax rate applies to auto mechanic invoices in Panama?

Panama has 7% ITBMS. ITBMS is 7% (10% for alcohol/tobacco). No income tax on foreign income. RUC required.

What payment methods are common for auto mechanics in Panama?

Common payment methods in Panama include: Bank Transfer, Banco General, Banistmo, Credit Card, Cash USD. Due upon completion. Large repairs may require deposit. Mechanic's lien applies.

What should auto mechanic invoices include in Panama?

Your invoice should include: RUC number, DGI registration, Client RUC, Invoice number. For auto mechanic services specifically, also include: Oil change, Brake service, Engine repair.

How to bill parts?

List part number, description, and price. Markup 20-50% is standard.

Labor rate?

Hourly shop rate ($80-150/hr) or book time for standard jobs.

What is Panama's ITBMS rate?

Panama applies 7% ITBMS on most goods and services. Higher rates for alcohol, tobacco, hotels. Exports exempt.