Producers and distributors of agricultural products in the country rejected the General Administrative Regulation #15-2008 of the Income Department (DGI), which establishes the procedure for VAT exemption for the agriculture sector, the arts and crafts industry and the sports fishing industry, which could generate some $25 million dollars in new taxes for the Government.

Source: laprensa.com.ni

More on this topic

Nicaragua: Protests Over Self Transfer of VAT

March 2013

Employers indicate that for some companies, the inadequate implementation of an administrative ruling of the Department of Revenue increases costs by 15%.

"Where the provision of services in general and the use or enjoyment of goods is provided by natural or legal persons or an entity, either resident or nonresident, which are not responsible for collecting VAT (IVA in Spanish), the payer of the service shall make a self transfer of the VAT incurred, which constitutes a tax credit under accreditation rules. "

Entrepreneurs in Favor of Value Added Tax

February 2013

The Costa Rican Union of Chambers and Associations of the Private Business Sector is proposing that the current sales tax becomes the Value Added Tax.

A statement from the Costa Rican Union of Chambers and Associations of the Private Business Sector (UCCAEP) reads:

- Production sector indicates that the bill to limit capital inflows is necessary but not sufficient.

Nicaragua Removes VAT from Central American Products

January 2013

A Nicaraguan business leader announced that its government will maintain equal tax treatment for products imported from countries in the region.

The affected Central American employers expect the Nicaraguan government to sign the rectifying documents as soon as possible so that the Directorate General of Customs can stop collecting the tax from today.

New in Costa Rica: Value Added Tax

March 2012

The tax reform, recently approved on its first reading, introduces Value Added Tax (or IVA in Spanish) to replace the existing Sales Tax (IV in Spanish).

An article by Carlos Cordero in Elfinancierocr.com, has the professional technical support of Mario Hidalgo, a tax partner at Deloitte.