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February 24, 2023

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 entered 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


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