By: Alfredo Roque Castillo
On June 22, 2022, the “Ministerial Agreement No.011-2022 Rules and Procedures for the Application of Exemptions to Electric Mobility” of the Ministry of Finance and Public Credit of the Republic of Nicaragua, published in La Gaceta Diario Official, number 121, from June 1, 2022.
This agreement establishes the procedures to manage the exemptions from Value Added Tax (VAT), Selective Consumption Tax (ISC) and Import Tariff Rights (DAI) on imports and local purchases, according to the tax lists of electric vehicles new, charging (or recharging) centers for electric vehicles, as well as new equipment and components that serve as spare parts for these charging centers.
To process, approve and validate import exemptions, we must know the following:
- The applicant, through his Customs Agent, registers in MODEXO the Single Exemption Form corresponding to the shipment of goods to be imported. Approved within 3 business days.
- The Ministry of Finance and Public Credit will authorize, within a period of 3 business days, the Single Format for the exemption of goods to be imported, after the approval of the guarantor institution.
- Once the exemption benefit contained in the Single Exemption Format has been authorized by the MHCP, the DGA will validate the Single Format for the exemption of the goods or merchandise to be imported (once the Single Exemption Format for the importation of goods, this will be valid for one month for its application).
In this same sense, to request exemptions on local purchases, we must know the following:
- The applicant must submit the request for a technical guarantee to the guarantor institution, for its evaluation, approval, denial or correction.
- Once the guarantee is issued by the guarantor institution, it registers and authorizes the assets to be exempted in the SIAEX, Y
- The DGI, having verified compliance with the requirements, will generate the electronic Tax Credit Certificate through the SIAEX, according to the restrictive list.
Finally, we share the exhaustive list of new electric vehicles, electric vehicle, charging (or recharging) centers, as well as new equipment and components that serve as spare parts for these charging centers.
1. The following new electric vehicles will be exempted from taxes according to the table established in section ¨g¨ article 3 of Law 554 and its reforms:
ELECTRIC CARS AND PICK-UP TRUCKS
| Item | Description | DAI | ISC | IVA |
| 8703.80.00.00.60 | Ambulances and Hearses | 10 | 35 | 15 |
| 8703.80.00.00.70 | Other vehicles, with a capacity less or equal to 5 people, including the driver, even with all-wheel drive. | 10 | 35 | 15 |
| 8703.80.00.00.80 | Other vehicles with a transport capacity greater or equal to 6 people but less or equal to 9 people, including the driver, even with all-wheel drive, 3 or 4 side doors, a flat floor and a tailgate or rear doors. | 10 | 35 | 15 |
| 8703.80.00.00.90 | Others | 10 | 35 | 15 |
| 8704.60.00.00.21 | Pick Up trucks, with a single cabin, with a capacity up to 2 tons | – | – | 15 |
| 8704.60.00.00.22 | Other Pick Up trucks, with a capacity up to 2 tons | – | – | 15 |
| 8704.60.00.00.23 | Other Pick Up trucks, with a greater capacity than 2 tons | – | – | 15 |
MOTORCYCLES AND VELOCIPEDES
| Item | Description | DAI | ISC | IVA |
| 8711.60.00.00.90 – | Others | 5 | – | 15 |
MINIBUSES AND BUSES
| Item | Description | DAI | ISC | IVA |
| 8702.40.00.00.10 | capacity equal to 10 people, including the driver | 10 | – | 15 |
| 8702.40.00.00.20 | Capacity greater than 10 people but less than 15 people, including the driver | 10 | – | 15 |
| 8702.40.00.00.30 | Capacity greater or equal to 15 people but less or equal to 45 people, including the driver | 10 | – | 15 |
| 8702.40.00.00.40 | Capacity greater than 45 people, including the driver | 10 | – | 15 |
TRANSPORT BOATS FOR PEOPLE AND GOODS
| Item | Description | DAI | ISC | IVA |
| 8901.10.10.00.10 | Powered by electric motor only | 10 | – | 15 |
| 8901.10.90.00.20 | Powered by electric motor only | – | – | 15 |
| 8901.20.00.00.10 | Powered by electric motor only | – | – | 15 |
| 8901.30.00.00.10 | Powered by electric motor only | – | – | 15 |
| 8901.90.10.00.10 | Powered by electric motor only | 10 | – | 15 |
| 8901.90.90.00.10 | Powered by electric motor only | – | – | 15 |
| 8902.00.10.00.10 | Powered by electric motor only | 10 | – | 15 |
| 8902.00.90.00.10 | Powered by electric motor only | – | – | 15 |
2. The public sector, defined in subparagraph h, of article 3 of Law 554 and its reforms, may exempt from taxes, the following list of new electric vehicles and their spare parts, with no CIF value limit
A. ELECTRIC VEHICULES
ELECTRIC CARS AND PICK-UP TRUCKS
| Item | Description | DAI | ISC | IVA |
| 8703.80.00.00.60 | Ambulances and Hearses | 10 | 35 | 15 |
| 8703.80.00.00.70 | Other vehicles, with a capacity less or equal to 5 people, including the driver, even with all-wheel drive. | 10 | 35 | 15 |
| 8703.80.00.00.80 | Other vehicles with a transport capacity greater or equal to 6 people but less or equal to 9 people, including the driver, even with all-wheel drive, 3 or 4 side doors, a flat floor and a tailgate or rear doors. | 10 | 35 | 15 |
| 8703.80.00.00.90 | Others | 10 | 35 | 15 |
| 8704.60.00.00.21 | Pick Up trucks, with a single cabin, with a capacity up to 2 tons | – | – | 15 |
| 8704.60.00.00.22 | Other Pick Up trucks, with a capacity up to 2 tons | – | – | 15 |
| 8704.60.00.00.23 | Other Pick Up trucks, with a greater capacity than 2 tons | – | – | 15 |
MOTORCYCLES AND VELOCIPEDES
| Item | Description | DAI | ISC | IVA |
| 8711.60.00.00.90 | Others | 5 | – | 15 |
MINIBUSES AND BUSES
| 8702.40.00.00.10 | capacity equal to 10 people, including the driver | 10 | – | 15 |
| 8702.40.00.00.20 | Capacity greater than 10 people but less than 15 people, including the driver | 10 | – | 15 |
| 8702.40.00.00.30 | Capacity greater or equal to 15 people but less or equal to 45 people, including the driver | 10 | – | 15 |
| 8702.40.00.00.40 | Capacity greater than 45 people, including the driver | 10 | – | 15 |
TRANSPORT BOATS FOR PEOPLE AND GOODS
| Item | Description | DAI | ISC | IVA |
| 8901.10.10.00.10 | Powered by electric motor only | 10 | – | 15 |
| 8901.10.90.00.20 | Powered by electric motor only | – | – | 15 |
| 8901.20.00.00.10 | Powered by electric motor only | – | – | 15 |
| 8901.30.00.00.10 | Powered by electric motor only | – | – | 15 |
| 8901.90.10,.00.10 | Powered by electric motor only | 10 | – | 15 |
| 8901.90.90.00.10 | Powered by electric motor only | – | – | 15 |
| 8902.00.10.00.10 | Powered by electric motor only | 10 | – | 15 |
| 8902.00.90.00.10 | Powered by electric motor only | – | – | 15 |
B. SPARE PARTS
ELECTRIC MOTORS
| Item | Description | DAI | ISC | IVA |
| 8501.31.00.00.10 | Electric motors with a voltage greater or equal to 36V, used only for the propulsion of electric motor vehicles | – | – | 15 |
| 8501.32.00.00.10 | Electric motors with a voltage greater or equal to 36V, used only for the propulsion of electric motor vehicles | – | – | 15 |
| 8501.33.00.00.10 | Electric motors with a voltage greater or equal to 36V, used only for the propulsion of electric motor vehicles | – | – | 15 |
| 8501.34.00.00.10 | Electric motors with a voltage greater or equal to 36V, used only for the propulsion of electric motor vehicles | – | – | 15 |
BATTERY MODULE
| Item | Description | DAI | ISC | IVA |
| 8507.30.00.00.20 | Battery module with voltage equal or greater than 36 V and 300 Wh, exclusively for vehicles powered by electric motor | – | – | 15 |
| 8507.50.00.00.20 | Battery module with voltage equal or greater than 36 V and 300 Wh, exclusively for vehicles powered by electric motor | – | – | 15 |
| 8507.60.00.00.20 | Battery module with voltage equal or greater than 36 V and 300 Wh, exclusively for vehicles powered by electric motor | – | – | 15 |
| 8507.80.10.00.20 | Battery module with voltage equal or greater than 36 V and 300 Wh, exclusively for vehicles powered by electric motor | – | – | 15 |
| 8507.80.90.00.20 | Battery module with voltage equal or greater than 36 V and 300 Wh, exclusively for vehicles powered by electric motor | – | – | 15 |
ADAPTERS – CONNECTORS – CABLES
| Item | Description | DAI | ISC | IVA |
| 8536.90.00.00.10 | Electric vehicles adapters for vehicles powered by an electric motor | – | – | 15 |
| 8536.90.00.00.20 | Connectors used in charging centers for vehicles powered by electric motor | – | – | 15 |
ELECTRIC THROTTLE
| Item | Description | DAI | ISC | IVA |
| 8708.99.00.00.10 | Accelerator pedal, exclusive for vehicles powered by electric motors | 5 | 5 | 15 |
| 8714.10.90.00.10 | Electric Throttle, exclusive for motorcycles powered by electric motors | 10 | 5 | 15 |
| 8714.99.90.00.10 | Electric accelerator, exclusive for velocipedes and bicycles powered by electric motor | – | 5 | 15 |
AUTOMATIC CONTROL MODULES
| Item | Description | DAI | ISC | IVA |
| 9032.89.00.00.10 | Battery module monitoring circuit, used in vehicles powered by electric motor | – | – | 15 |
| 9032.89.00.00.20 | Engine controller module, used in vehicles powered by electric motor | – | – | 15 |
| 9032.89.00.00.30 | Speed controller, used in vehicles powered by electric motor | – | – | 15 |
| 9032.89.00.00.40 | Electronic Control Unit necessary for the on-board charging system, used in vehicles propelled by an electric motor | – | – | 15 |
3. List of electric vehicles exempt from 100% of taxes without limit of CIF value, for the public collective transport service and the passenger and cargo water transport service.
PUBLIC COLLECTIVE PASSENGER TRANSPORT SERVICE
| Item | Description | DAI | ISC | IVA |
| 8702.40.00.00.10 | capacity equal to 10 people, including the driver | 10 | – | 15 |
| 8702.40.00.00.20 | Capacity greater than 10 people but less than 15 people, including the driver | 10 | – | 15 |
| 8702.40.00.00.30 | Capacity greater or equal to 15 people but less or equal to 45 people, including the driver | 10 | – | 15 |
| 8702.40.00.00.40 | Capacity greater than 45 people, including the driver | 10 | – | 15 |
BOATS FOR TRANSPORTATION OF PASSENGERS AND CARGO
| Item | Description | DAI | ISC | IVA |
| 8901.10.10.00.10 | Powered by electric motor only | 10 | . | 15 |
| 8901.10.90.00.20 | Powered by electric motor only | – | – | 15 |
| 8901.20.00.00.10 | Powered by electric motor only | – | – | 15 |
| 8901.30.00.00.10 | Powered by electric motor only | – | – | 15 |
| 8901.90.10.00.10 | Powered by electric motor only | 10 | . | 15 |
| 8901.90.90.00.10 | Powered by electric motor only | – | – | 15 |
| 8902.00.10.00.10 | Powered by electric motor only | 10 | . | 15 |
| 8902.00.90.00.10 | Powered by electric motor only | – | – | 15 |
4. The following list of electric trucks for cargo transportation are exempt from 100% of taxes without limit of CIF value.
ELECTRIC TRUCKS FOR CARGO TRANSPORTATION
| Item | Description | DAI | ISC | IVA |
| 8701.24.00.00.00 | Powered by electric motor only | – | – | 15 |
| 8704.60.00.00.24 | Other vehicles with open cargo compartment, independent of the cabin | – | – | 15 |
| 8704.60.00.00.25 | Panel delivery truck, with a capacity of up to 2 tons of cargo | – | – | 15 |
| 8704.60.00.00.26 | Other vehicles with closed cargo compartment, even independent of the cabin | – | – | 15 |
| 8704.60.00.00.27 | Tank vehicles, refrigerators, and garbage collectors | – | – | 15 |
| 8704.60.00.00.29 | Others | – | – | 15 |
| 8704.60.00.00.31 | Tank vehicles, refrigerators, and garbage collectors | – | – | 15 |
| 8704.60.00.00.39 | Others | – | – | 15 |
| 8704.10.00.00.10 | Powered by electric motor only | – | – | 15 |
5. Exhaustive list for the exemption of load centers and their spare parts.
CHARGING CENTERS AND SPARE PARTS
| Item | Description | DAI | ISC | IVA |
| 8504.40.00.00.10 | Charging centers for vehicles powered only by electric motor | – | 5 | 15 |
| 8504.40.00.00.20 | On-board battery charger, used in vehicles powered by electric motor | – | 5 | 15 |
| 8544.42.10.00.10 | Charging cable of up to 10 meters in length, for charging centers for vehicles powered by an electric motor | – | 5 | 15 |
| 8544.42.21.00.10 | Charging cable Up to 10 meters in length, for charging centers of vehicles powered by an electric motor | 15 | – | 15 |
| 8544.42.29.00.10 | Charging cable Up to 10 meters in length, for charging centers of vehicles powered by an electric motor | – | – | 15 |
| 8544.60.00.00.10 | Charging cable Up to 10 meters in length, for charging centers of vehicles powered by an electric motor | 15 | – | 15 |
The tariff classification of the goods is subject to modifications or amendments to the nomenclature of the version applicable in Nicaragua of the Central American Tariff System (SAC), including its explanatory notes.
For more information on this and other legal issues, contact LatinAlliance Nicaragua, Lawyers and Notaries, at the following email address: aroque@latinalliance.co