VAT Exemption at the National Fair for National Holidays

The Government of Nicaragua will apply an exemption from the Value Added Tax (VAT) from September 12 to 20, 2026, on the sales of food, beverages, and lodging at the National Fair, according to Inter-institutional Agreement MHCP-INTUR-DGI No. 01-2026 published in La Gaceta, Official Gazette No. 163, on Wednesday, September 2, 2026, page 8879.

The measure, signed by the Vice Minister of Finance and Public Credit, the Co-Director of the Nicaraguan Institute of Tourism (INTUR), and the Director General of Revenue, seeks to energize the tourism sector during the promotion campaign for the National Holidays, which commemorate 205 years of Independence and the 170th anniversary of the Battle of San Jacinto.

Scope of the exemption

The agreement exempts from VAT food, beverage, and lodging establishments participating in the National Fair—whether local, national, regional, or international—for the enjoyment of tourists, visitors, and Nicaraguan families.

• Validity period: from September 12 to 20, 2026.
• Covered goods and services: food, beverages, and lodging.
• Scope: sales carried out at the National Fair.
• Objective: to boost sales and reactivate the tourism sector.

Legal framework and obligations

The measure is based on Article 21 of Law No. 290 (Law on Organization, Competence, and Procedures of the Executive Branch); Articles 4, 5, 6, and 7 of Law No. 1210 (General Tourism Law); Articles 145 and 152 of the Tax Code (Law No. 562); Law No. 339 and Article 127 of Law No. 822 (Tax Concertation Law).

The agreement further establishes that:

• INTUR, together with the country’s municipalities, will promote the sector’s participation in the National Fair.
• The General Directorate of Revenue will establish and publish, via notice, the mechanisms for the enrollment and registration of operations for participants.
• Participating establishments are obliged to inform their customers about their participation in the Fair.

Signature and publication

The agreement was issued in the city of Managua on August 26, 2026, and was signed by Walter Petters Cuadra, Director General of Revenue; Mara Vanesa Stotti, Co-Director of the Nicaraguan Institute of Tourism; and Nicolás Espinoza Rivera, Vice Minister of Finance and Public Credit.

The regulation mandates its publication on the websites of the Ministry of Finance and Public Credit, INTUR, and the General Directorate of Revenue, without prejudice to its subsequent disclosure in La Gaceta, Official Gazette.

Impact for readers

The exemption provides direct relief for consumers attending the National Fair during the Independence Holidays by reducing the final price of food, beverages, and lodging, as well as a stimulus for tourism establishments during one of the most active dates on the national calendar.

Source: La Gaceta, Official Gazette No. 163, Wednesday, September 2, 2026, page 8879 (official reference: Inter-institutional Agreement MHCP-INTUR-DGI No. 01-2026).