Tax News Update    Email this document    Print this document  

February 24, 2023
2023-0363

Nicaragua's Ministry of Finance publishes new lists of products exempt from VAT

On 14 February 2023, the Nicaraguan Ministry of Finance published, on its official website, the agreements number 001-2023 and 002-2023, which include an addenda and updates to the list of finished products that according to the article 127 of the Law of Tributary Concertation are exempt from Value Added Tax (VAT) and the list of exempted goods that are used for the elaboration of the finished products included in numerals 1 and 2 of the mentioned article 127.

The lists of exempted goods contain intermediate goods, capital goods, goods used in agroindustry, food, in the handicrafts, leather and footwear, wood and furniture, metal-mechanics, bakery, plastic, and clothing textiles, among others.

The goods included on previous lists but not covered by the new agreements are no longer exempt from VAT.

The agreements enter into force on 14 February 2023 and their publication in the Official Gazette is expected to take place in the following weeks.

____________________________

For additional information with respect to this Alert, please contact the following:

Ernst & Young Nicaragua SA

Ernst & Young LLP (United States), Latin American Business Center, New York

Ernst & Young LLP (United Kingdom), Latin American Business Center, London

Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2024, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement