Law 531 of 2026 extended the effective date of Law 473 of 2025 until July 1, 2027, providing businesses, restaurants, and other service providers with an additional year to update their invoicing systems, pricing displays, and internal procedures.
Once the reform becomes effective, all prices displayed to consumers must include applicable taxes and mandatory charges, strengthening pricing transparency and consumer protection in Panama.
In this article, we explain the main changes introduced by the legislation, their impact on businesses, and the recommended steps to ensure timely compliance.
What Does Law 531 of 2026 Establish?
Law 531 of 2026 has a single purpose: to postpone the effective date of Law 473 of 2025.
Instead of becoming effective in June 2026, the new obligations will now apply beginning July 1, 2027.
What Changes Were Introduced by Law 473 of 2025?
Law 473 amended Articles 56 and 64 of Law 45 of 2007 (Consumer Protection and Competition Defense Law) to strengthen transparency in the pricing information provided to consumers.
Tax-Inclusive Pricing
All displayed prices must include:
- Panama’s VAT (ITBMS)
- Applicable national taxes
- Other mandatory charges
This requirement applies to both physical establishments and digital sales platforms.
Charging the Advertised Price
Businesses may only charge the price that has been advertised.
If a product displays two different prices, the consumer is entitled to pay the lower price.
Voluntary Tips Must Be Clearly Separated
Tips remain voluntary.
Whenever a tip is suggested, it must be displayed separately from the total amount due, including taxes.
| Item | Treatment |
| Subtotal | Before taxes |
| VAT (ITBMS) | Itemized separately |
| Total Including Taxes | Mandatory |
| Suggested Tip | Optional |
Special Sales and Discounts
Promotional offers must display:
- Previous price
- Promotional price
- Lowest price offered during the previous three months
These requirements are intended to prevent misleading discount practices.
New Rules for Parking Facilities
The reform introduces new obligations regarding:
- Clearly visible parking rates
- Per-minute billing where applicable
- Disclosure of whether complimentary parking is available
Which Taxes Must Be Included in the Displayed Price?
| Tax | Rate |
| General VAT (ITBMS) | 7% |
| VAT on alcoholic beverages | 10% |
| VAT on tobacco products | 15% |
| Selective consumption taxes | As applicable |
| Municipal fees | As applicable |
How Does This Reform Impact Businesses?
The implementation of these new requirements will require businesses to review several internal processes.
Electronic Invoicing
Update invoicing systems to accurately display the subtotal, taxes, and total amount due.
E-commerce
Review prices displayed on:
- Websites
- Online stores
- Marketplaces
Point-of-Sale (POS) Systems
Update POS configurations to ensure that the displayed price reflects the final amount payable by the customer.
Marketing Materials
Review and update:
- Menus
- Catalogs
- Product labels
- Advertisements
Compliance Timeline
| Sector | Requirement | Effective Date |
| Retail Businesses | Display tax-inclusive prices | July 1, 2027 |
| Restaurants | Compliant invoicing | July 1, 2027 |
| E-commerce | Display final prices | July 1, 2027 |
| Comply with new requirements | New Rules | July 1, 2027 |
What Should Businesses Do Before July 1, 2027?
Businesses are encouraged to:
- Audit all published prices.
- Review and update POS systems.
- Update digital platforms.
- Revise tipping policies.
- Review signage and pricing displays.
- Obtain legal advice before the law becomes effective.
How Can LAC Legal Help?
At LAC Legal, we advise domestic and international companies on complying with new regulatory obligations related to consumer protection, commercial law, and tax compliance.
Our services include:
- Compliance assessments.
- Review of commercial processes.
- Internal systems implementation.
- Consumer protection advisory.
- Regulatory compliance.
- Corporate training.
Frequently Asked Questions
The obligations established under Law 473 of 2025 will become enforceable on July 1, 2027.
No. Tips remain voluntary.
Yes. The displayed price must reflect the final amount payable by the consumer.
Yes. The requirements also apply to online sales platforms and digital marketplaces.
Businesses should update their invoicing systems, pricing policies, and internal procedures to ensure compliance before the law takes effect.