Hostal El Momento

From the Blog


IVA or the 15%  Sales Tax of Nicaragua which many of you will see on your bills depending on where you are or which business you visit is something many travelers are not aware of until they come to the country.
As one of the highest in the region it does add extra cost to the bills of some travelers who are passing through the country and had already set a daily budget !
I have recently heard reports from other destinations within the country that IVA, permits and restaurant/ hotel bills are not enforced as much as they are in other location across the country.
Here in Granada all permits and the  bills with 15% IVA are not just needed but checked on by government officials from all departments and business owners need to be on top of their game.
This got me thinking of article I had read and also a review we had received about how expensive everything is in Granada compared to everywhere else and this is probably due to the strict usage of the tax paid. How much more expensive Granada is compared to everywhere else probably depends on your budget, if you are traveling for many months then your budget is alot less than for those away from home for only 2 weeks.
This lead me to believe that as Granada is a huge tourist destination, the government are continually looking to make more of the city and with there talk of it being a World Heritage Site the infrastructure needs to change for them to qualify. As when they changed Calzalda St and the recent paving of the roads it all costs money and this is were IVA plays its part.
Granada is the jewel in the crown for government at this present moment in time and so when you do visit the city and find it is a little more expensive this could be the reason behind it.
As Nicaragua becomes more popular then the likes of Leon and San Juan Del Sur may also see a change in how businesses are affected by IVA and permits etc as government will start to put more money into these areas. Hopefully this will benefit both local people and the tourist who sees better infrastructure as the next few years roll on.
These are my views only and not from another source.

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