Quick overview
| Standard Rate | Reduced Rate | Other Rates |
| 15% | N/A | Zero-rated (0%) and exempt |
The local name for VAT in Nicaragua is Impuesto al valor agregado (IVA).
There is basically 1 VAT rate in Nicaragua:
- Standard VAT rate is 15%
Recent developments
For more information about (recent) rate change developments in Nicaragua, please click HERE.
Standard rate: 15%
This rate applies for all transactions that take place in Nicaragua, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).
Zero rate (0%)
Examples of goods and services taxable at 0%
- Exports
Examples of exempt supplies of goods and services
The term “exempt supplies” refers to supplies of goods and services that are not liable to VAT and that do not qualify for input tax deduction.
- Live animals and fresh fish
- Domestically produced fruits and vegetables that are unprocessed
- Basic foodstuffs, such as corn tortillas, rice, beans, certain dairy products, eggs and meat
- Used goods (unless imported)
- Crude oil
- Real estate transactions
- Life and health insurance
- Domestic transport
- Education
- Certain financial services
- Construction of social housing (as defined by law) and leasing of unfurnished accommodation
- Equipment used for agriculture
- Irrigation for agriculture and forestry
- Electricity used for irrigation
- Importation of goods, machinery and equipment for use by the media
- Books, newspapers and magazines
- Medicines and vaccines
- Local production of sanitary protection products and toilet paper
- Matches, kerosene, butane and electricity
- Veterinary products
- Insecticides, fungicides, fertilizers and seeds
Option to tax for exempt supplies. The option to tax exempt supplies is not available in Nicaragua.
A global VAT/GST rate overview can be found here (note this is a work in progress).
This post was last updated on September 2, 2021.
