Nicaragua Removes VAT from Central American Products

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

Monday, January 14, 2013

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.

According to an article in Nacion.com, following complaints by Honduras and Guatemala, the Nicaraguan government has agreed to remove the collection of value added tax (VAT), which came into force on January 1 as part of a reform of the Coalition Tax Act, taxing personal care products and imported kitchen ware coming into Nicaragua.

The Nicaraguan government accepted the complaints that came through the Superior Council of Private Enterprise (COSEP), and will be applying the tax rectification this week, as reported in Guatemala by José Adán Aguerri, Cosep’s president.

Aguerri added that Nicaragua's decision to rectify the collection was adopted last Friday, at a meeting between Cosep and government authorities in the neighboring country.



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%.

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

Refund of VAT Charged on Imported Goods

January 2013

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The president of the Superior Council of Private Enterprise (COSEP), Jose Adán Aguerri, stated that President Daniel Ortega will sign an erratum revoking the charges built in to the tax reform passed last year.

Nicaragua Protects Domestic Products By Removing Taxes

January 2013

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From 1st January, the relief has been applied in Nicaragua on the 15% Value Added Tax (VAT) on domestic production of toothpaste, toilet paper, bath soap, washing detergents, matches, and sanitary napkins.