Nicaragua applies different VAT (Value Added Tax) rates depending on the type of product or service. The table below provides a clear overview of these rates, helping residents and visitors understand how tax is applied across various categories.
| Category | VAT Rate | Notes |
|---|---|---|
| Standard Rate | 15% | Applies to most goods and services |
| Zero Rate | 0% | Applies to exports and selected basic goods |
| Exempt Services | Exempt | Education, health, and public transport |
| Tourism Services (through authorized agencies) | 0% or Exempt | Applies only to registered providers |
Nicaragua VAT Rate for Foreigners: What You Need to Know
Nicaragua charges a Value Added Tax (VAT) on most goods and services. The standard VAT rate is 15%. This rate applies to both residents and foreigners.
Who Pays VAT in Nicaragua?
Everyone who buys goods or services in Nicaragua pays VAT. This includes foreign visitors. VAT is usually included in the final price shown in stores, restaurants, and hotels.
Are There Any Exceptions for Foreigners?
Yes, there are some. Tourists may receive VAT exemptions on certain services. For example, hotels and tour operators that are officially registered can offer services without charging VAT. These exemptions only apply if you book through approved providers.
Can Foreigners Get a VAT Refund?
Nicaragua does not have a standard VAT refund system for tourists. Unlike in some other countries, travelers cannot claim back VAT at the airport or after leaving the country.
What Should Foreigners Keep in Mind?
- Check your receipts to see if VAT is included.
- Ask your hotel or tour provider if their prices include VAT or if they are exempt.
- Use registered travel agencies for potential VAT-free services.
Summary
Foreigners in Nicaragua pay the same 15% VAT rate as locals. Some tourism-related services may be exempt if booked through official channels. There is no general VAT refund process for visitors. Being aware of these points helps you understand the actual cost of goods and services during your stay.
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