Nicaraguan VAT

Nicaraguan VAT, or Value Added Tax, is a consumption tax levied on the sale of goods and services in Nicaragua. It is applied at each stage of the production and distribution process, with businesses collecting the tax on behalf of the government. The standard VAT rate in Nicaragua is typically a percentage of the sales price, and it is included in the final price paid by consumers. This tax is significant for the country’s revenue generation and is governed by specific regulations that outline exemptions, rates, and compliance obligations for businesses. VAT is designed to be ultimately borne by the final consumer, while businesses can usually deduct the VAT they pay on inputs from the VAT they collect from their customers.