Business consulting services
Our business consulting services can help you improve your operational performance and productivity, adding value throughout your growth life cycle.
Business process solutions
We can help you identify, understand and manage potential risks to safeguard your business and comply with regulatory requirements.
Business risk services
The relationship between a company and its auditor has changed. Organisations must understand and manage risk and seek an appropriate balance between risk and opportunities.
As organisations become increasingly dependent on digital technology, the opportunities for cyber criminals continue to grow.
Forensic and investigation services
At Grant Thornton, we have a wealth of knowledge in forensic services and can support you with issues such as dispute resolution, fraud and insurance claims.
Mergers and acquisitions
Globalisation and company growth ambitions are driving an increase in M&A activity worldwide. We work with entrepreneurial businesses in the mid-market to help them assess the true commercial potential of their planned acquisition and understand how the purchase might serve their longer- term strategic goals.
Recovery and reorganisation
Workable solutions to maximise your value and deliver sustainable recovery
Transactional advisory services
We can support you throughout the transaction process – helping achieve the best possible outcome at the point of the transaction and in the longer term.
We provide a wide range of services to recovery and reorganisation professionals, companies and their stakeholders.
The International Financial Reporting Standards (IFRS) are a set of global accounting standards developed by the International Accounting Standards Board (IASB) for the preparation of public company financial statements. At Grant Thornton, our IFRS advisers can help you navigate the complexity of financial reporting from IFRS 1 to IFRS 17 and IAS 1 to IAS 41.
Audit quality monitoring
Having a robust process of quality control is one of the most effective ways to guarantee we deliver high-quality services to our clients.
Global audit technology
We apply our global audit methodology through an integrated set of software tools known as the Voyager suite.
Corporate and business tax
Our trusted teams can prepare corporate tax files and ruling requests, support you with deferrals, accounting procedures and legitimate tax benefits.
Direct international tax
Our teams have in-depth knowledge of the relationship between domestic and international tax laws.
Global mobility services
Through our global organisation of member firms, we support both companies and individuals, providing insightful solutions to minimise the tax burden for both parties.
Indirect international tax
Using our finely tuned local knowledge, teams from our global organisation of member firms help you understand and comply with often complex and time-consuming regulations.
Innovation and investment incentives
Dynamic businesses must continually innovate to maintain competitiveness, evolve and grow. Valuable tax reliefs are available to support innovative activities, irrespective of your tax profile.
Private client services
Our solutions include dealing with emigration and tax mitigation on the income and capital growth of overseas assets.
The laws surrounding transfer pricing are becoming ever more complex, as tax affairs of multinational companies are facing scrutiny from media, regulators and the public
Tax policies are constantly evolving and there are a number of complex changes on the horizon that could significantly affect your business.
Indirect tax snapshot
Please click on each section to expand further:
The Value Added Tax (IVA, for its acronym in Spanish), is applied to the following activities performed in Nicaraguan territory:
• goods transfer
• imports of goods
• exports of goods and services
• provision of services or use of goods.
The IVA tariff is 15% of the value of a product or of an activity carried out; except the export of goods of the national production and the services provided abroad, which tax rate is of 0%.
The law establishes a list of goods and services that are exempt from the Value Added Tax. For example: goods related to academic studies, medicine and human health, agricultural goods, medical sector services, financial markets, sporting events, religious goods, etc. The goods and services that are exempt are defined in a tax list emitted by the minister of finance and public credit.
The responsibility for charging, collecting and paying it to the tax authority at each stage of the process rests with the business making the sale. A business registered for the tax will charge VAT (output tax) on its sales, and incur VAT (input tax) on its purchases (including any VAT paid at importation). The difference between the output tax and the deductible input tax in each accounting period will be the amount of VAT payable by the business to the tax authority.
The right of accreditation is personal and will not be transferable, except in the case of merger of companies, successions, transformation of companies and change of business name.
Where the input tax exceeds the output tax, a refund can be claimed. Taxpayers may recover the sales tax by means of credit or since cash reimbursements, as applicable.
Businesses that make exempt supplies are unable to claim all of the input tax that they incur, so the VAT paid to suppliers will be a ‘real’ cost.
There is no a registration limit for the tax. A ‘person’ who either makes or intends to make taxable sales of goods or services in the course or furtherance of a business must register for VAT.
For these purposes, a ‘person’ includes any legal entity.
Therefore, once a person is registered for VAT, all of their business activities will be covered by the registration – even if the nature of some of those activities are very different.
A penalty may be imposed by the tax authority if a business fails to register at the correct time. Without prejudice to the penalties that could apply, those who do not fulfil their obligations to register are obliged, however, to pay the tax, and not entitled to a refund or credit for the tax paid on the existence of goods which remain in inventory at the date of registration as taxpayers.
There is no a registration limit for the tax.
No. There are no specific regulations for these type of situations.
No, except if the non-established business qualifies as a permanent establishment.
VAT returns have to be submitted in a monthly basis. All VAT returns have to be submitted within 15 days of the end of the previous month.
A default surcharge penalty may be imposed by the tax authority if VAT returns are not submitted on time, or the related tax is not paid by the due date.
Any person who belatedly submits his/her declaration and/or payment of taxes and for any reason is in default, must pay the corresponding credit with a surcharge of 5% (five percent) for each month or fraction of the month of the delay, on the unpaid balance.
In any case, the accumulated surcharges referred to above may exceed the equivalent to fifty percent (50%) of the unpaid balance.
Yes. A range of penalties can be imposed where businesses do not comply with the VAT rules.
Fines and interest can be applied for errors or omissions made on tax returns, or where the tax is paid late. Penalties and interests can also be applied where the business do not maintain adequate records. Criminal proceeding may be brought in the case of more serious matters.
No, VAT cannot be reclaimed by the cross-border businesses if these are not registered as having operations in Nicaragua.
A VAT invoice must show:
• an invoice number which is unique and sequential
• the seller’s name and address
• the seller’s VAT registration number
• the invoice date
• the customer’s name
• a description sufficient to identify the goods or services supplied to the customer
• the rate of any cash discount
• the total amount of VAT charged.
For each different type of item listed on the invoice, the following must be shown:
• the unit price or rate, excluding VAT
• the quantity of goods or the extent of the services
• the total amount payable, excluding VAT. Where a VAT invoice includes zero-rated or exempt goods or services, it must show clearly that there is no VAT payable on those goods or services.
VAT invoices can be issued, received and stored in electronic format with the authorization of the Tax Authority.
For further information on indirect tax in Nicaragua please contact:
Martin Manuel Ruiz
Silvio Ronald Flores