Nicaragua — Value-added tax (VAT)
|General VAT Rate||Other Rates||Local Currency|
Nicaragua's general VAT rate is 15%, with other rates including 0% that can apply to certain transactions. The Value-added tax (VAT) is administered by the Ministry of Finance (Ministerio de Hacienda y Crédito Público) (http://www.dgi.gob.ni) in Managua.
Nicaragua is a member of the None that would provide differentiated VAT treatment trading bloc, which may affect international VAT collection and regulations.
Nicaragua's consumption tax is called the Value-added tax (VAT), locally known as Impuesto al valor agregado (IVA), which was introduced in December 1969.
Nicaragua VAT rates for 2020
- Zero-rated and exempt
Nicaragua VAT number format
Businesses in Nicaragua that are required to collect tax will be issued an identification number. Tax identification numbers can be verified with the Ministry of Finance (Ministerio de Hacienda y Crédito Público), and will follow a certain format. The VAT number format is Taxpayer identification number (RUC).
Nicaragua VAT return periods
Businesses in Nicaragua that are required to collect tax from consumers must file regular tax returns with the Ministry of Finance (Ministerio de Hacienda y Crédito Público) in Managua. Nicaragua's VAT return periods are:
Monthly (two weeks for large taxpayers)
Nicaragua Value-added tax (VAT) Thresholds
These are the revenue thresholds at which businesses in Nicaragua are required to start collecting and remitting tax.
Recovery of VAT by:
Non-established businesses are small, unincorporated businesses that sell taxable goods and may consist of a single individual, or several. Non-incorporated businesses in Nicaragua are not required to collect taxes from the consumer.
Nicaragua VAT Refunds
Many countries allow tourists, and others making purchases for export, to receive a VAT refund on exiting the country (or make purchases VAT free). While we don't have data on the Nicaragua VAT refund program, more info can be obtained from the Ministry of Finance (Ministerio de Hacienda y Crédito Público).
Nicaragua Tax Sources & Citations
- EN: Nicaragua Value Added Tax
- RU: НДС
- CN: 增值税
- Nicaragua Ministry of Finance (Ministerio de Hacienda y Crédito Público) (http://www.dgi.gob.ni)
- Ernst & Young global VAT tax study, Nicaragua (updated 2020)
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