Nicaragua VAT Calculator 2026
Last updated: January 2026
The Value Added Tax (IVA) in Nicaragua for 2026 has a general rate of 15%, administered by the DGI (Dirección General de Ingresos). This rate applies to most goods and services. Basic basket products, medications, educational materials, and public transportation are exempt from IVA. Agricultural inputs and some exports are zero-rated. To calculate IVA, multiply the base amount by 0.15. If the price already includes IVA, divide by 1.15 to get the pre-tax amount. Nicaragua's 15% rate is among the highest in Central America. Small taxpayers under the simplified regime (cuota fija) pay a fixed monthly fee instead of itemized IVA. The DGI administers IVA collection and enforcement.
FAQ
What is the IVA rate in Nicaragua in 2026?
The general IVA rate in Nicaragua is 15%, applicable to most goods and services. There is no reduced rate — products are either taxed at 15% or fully exempt. Small taxpayers under the cuota fija regime pay a fixed monthly amount instead.
What products are exempt from IVA in Nicaragua?
IVA-exempt items in Nicaragua include: basic basket products (rice, beans, corn, sugar, cooking oil), medications, educational materials, public transportation, agricultural inputs, and funeral services. Exports are zero-rated (0% with credit recovery).
How is IVA calculated on a price in Nicaragua?
To calculate IVA, multiply the base amount by 0.15. For example, on C$1,000 the IVA is C$150, total C$1,150. If the price already includes IVA, divide by 1.15. Example: C$1,150 ÷ 1.15 = C$1,000 pre-tax.
What is the cuota fija regime in Nicaragua?
The cuota fija is a simplified tax regime for small taxpayers with monthly income up to C$100,000 and limited inventory. Instead of calculating IVA and ISR separately, they pay a fixed monthly fee to the DGI based on their income level. They cannot issue formal IVA invoices.
When is IVA declared in Nicaragua?
IVA is declared monthly to the DGI within the first 15 calendar days of the month following the tax period. General taxpayers must file Form 124 (IVA declaration) electronically through the DGI's VET (Ventanilla Electrónica Tributaria) system.