The tax free exemption is on the IVA (15% Value Added Tax) at all participating hotels, bars, and restaurants during this coming Christmas and New Year period.
This exemption forms part of the Special Tourism Plan and involves the Nicaraguan Tourism Institute (INTUR), the Ministry of Finance and Public Credit (MHCP) and the General Directorate of Revenue (DGI) and is designed to encourage families to travel to various locations within Nicaragua and enjoy time together during the holiday season. Click here for Official Press Release.
Duration of the Exemption
The exemption will be in place between December 19th 2025 to January 2nd 2026 and is available across the entire country. It’s not limited to tourist destinations, only limited to certain business types (lodging, bars and restaurants).
Consumers
The tax free IVA exemption will be applied at the point of sale and therefore will only pay the net price of the goods or service – Tax Free. Hotels, bars, and restaurants registered under the exemption will not charge the 15% IVA during the dates mentioned above.
Businesses
As usual, businesses wishing to participate in the IVA exemption MUST REGISTER with the DGI. This can be done on line at the Ventana 24/7 online system by clicking on the “Fiesta Patria” icon on the menu page and following the instructions that come up.
IVA TRIVIA
- The Central Government collected the equivalent of US $1.423 Billion in IVA – Value Added Tax in 2024 through the DGI. (Total revenue for all types of taxes was US $3,957 Billion). Source; Nicaragua en Cifras, Central Bank of Nicaragua.
- In Canada this tax is known as GST (a 5% Goods and Services Tax), however most provinces also have other sales taxes on top of the GST that can increase the combined tax to 17%.
- In the United Kingdom, IVA is also known as a Value Added Tax and the maximum rate is 20%.
- The United States does not have a Federal Goods and Service Tax but relies on a complicated system of sales tax jurisdictions across the country through most states.
