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Panama Tax Information

7% ITBMS

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

Plumber Services to Invoice

  • Pipe repairs
  • Drain cleaning
  • Water heater service
  • Fixture installation
  • Leak detection
  • Sewer line repair
  • Emergency plumbing

Invoice Requirements in Panama

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

Payment Terms

Payment on completion for most jobs. Large projects may require deposits.

Contado15 días30 díasCrédito

Payment Methods in Panama

Bank TransferBanco GeneralBanistmoCredit CardCash USD

Plumber Invoice Tips

  • Include license number
  • Itemize parts used
  • Note service address
  • Document warranty info
  • Reference work performed

Frequently Asked Questions

What tax rate applies to plumber 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 plumbers in Panama?

Common payment methods in Panama include: Bank Transfer, Banco General, Banistmo, Credit Card, Cash USD. Payment on completion for most jobs. Large projects may require deposits.

What should plumber invoices include in Panama?

Your invoice should include: RUC number, DGI registration, Client RUC, Invoice number. For plumber services specifically, also include: Pipe repairs, Drain cleaning, Water heater service.

How should plumbers price their work?

Flat rate for common repairs, hourly plus materials for complex jobs. Include service call fee.

Should plumbers charge for estimates?

Many offer free estimates for larger jobs. Charge diagnostic fee for troubleshooting.

What is Panama's ITBMS rate?

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