Ecuador’s Internal Revenue Service (SRI) has issued a Circular confirming the 15% IVA applies to digital services, including sports betting, online gaming and streaming, and setting out collection rules for intermediaries, providers and users.
Ecuador’s Internal Revenue Service (SRI) has issued a Circular on 31 March 2026, setting out detailed guidance on the application of Value Added Tax (IVA) to digital services, with a particular focus on sports betting (sports forecasts), online gaming and streaming services.
The Circular confirms that the applicable IVA rate is 15% and defines digital services as those supplied via the internet or similar networks that are essentially automated and require minimal human intervention. Covered services include access to or download of sports content, online games and games of chance, streaming of betting content or sports events, and sports betting services provided through virtual or electronic platforms, whether domestic or foreign.
For imported digital services, the taxable event occurs at the moment of payment by a resident or permanent establishment in Ecuador to a non-resident provider.
The Circular outlines three scenarios for IVA collection and payment:
- Where a non-resident provider is not registered in Ecuador and payment is made through a financial intermediary, such as a bank or card issuer, the intermediary must act as a withholding agent and retain 100% of the IVA at the time of payment, remitting it to the SRI.
- Where the provider is resident in Ecuador or a non-resident registered for IVA, the provider is responsible for collecting the tax directly from users. In the case of sports betting platforms, operators must consolidate transactions monthly and issue a single monthly invoice per user, including the 15% IVA.
- Where the non-resident provider is not registered and no financial intermediary is involved, the resident user becomes responsible for the tax. The user must issue a “purchase liquidation” (liquidación de compras), declare the transaction, and pay 100% of the IVA directly to the SRI.
In addition, the SRI clarified that streaming of sports events, online video games accessed via payment, subscription or download, and sports betting services fall within the scope of taxable digital services.
The Circular further notes that non-resident providers registered for IVA in Ecuador must comply with the procedures established under Resolution No. NAC-DGERCGC20-00000055 of 4 September 2020 for the declaration and payment of VAT.
