Temporary VAT exemption for the tourism sector

September 3, 2021

On September 1, 2021, the La Prensa Grafica website published the temporary VAT exemption for tourism in Nicaragua.

1. VAT exemption

The Government of Nicaragua announced yesterday that Value Added Tax (VAT) will be exempted to certain consumer establishments next September to promote tourism in the context of the 200th anniversary of independence.

The exemption will be valid from September 14 to 17 “on sales in food, beverage and lodging establishments to promote more and more meetings to celebrate tourism,” said Vice President Rosario Murillo.

2. Coincidence with state holidays

The days without VAT will coincide with the state holidays scheduled for September 10-19, when the Nicaraguan government will commemorate the bicentennial of Central America’s independence from the Spanish Crown.

3. Tourism promotion

The Government of Nicaragua is again promoting tourism in the context of the pandemic after having done so for the first time in 2020, six months after the coronavirus was detected in the country.

However, such measures have been criticized by the Nicaraguan medical profession and have raised concern among the World Health Organization (WHO).

Source: La Prensa Gráfica 02/09/21