The VAT law or Organic Law for Tax Simplicity and Progressiveness was Officially published on 31st December 2019. On 28 July 2020, the President approved the rules for administering the VAT measures on digital services. The new VAT comes into effect on 16 September 2020. The new rules include the definition of digital services, lists of digital services subject to VAT and VAT withholding procedures. According to this, non-resident digital service providers to persons are subject to 12% VAT rate.
Related Posts
Ecuador launches tax benefits to support women entrepreneurs
March 18, 2025
Ecuador has introduced a series of tax benefits to support female entrepreneurs with the enactment of the Organic Law for Promoting the Economy of Women Entrepreneurs, published in the Official Gazette on 10 March 2025. The law aims to reduce
Read More
Ecuador cuts VAT on tourism services for carnival holiday
March 05, 2025
Ecuadorian President Daniel Noboa has enacted Executive Decree No. 542 on 24 February 2025, temporarily lowering the Value Added Tax (VAT) rate to 8% for tourism-related services during the Carnival holiday period from 1 March to 4 March
Read More Ecuador establishes new mining annex reporting rule
February 28, 2025
Ecuador's Internal Revenue Service (SRI) has issued Resolution No. NAC-DGERCGC25-00000004 of 20 February 2025, outlining the rules for the new Mining Annex (Anexo Minero). The Annex collects data on metallic and non-metallic mineral exploration,
Read More
Ecuador adjusts withholding rates for large taxpayers’ self-withholding obligation
February 07, 2025
Ecuador's Internal Revenue Service (SRI) issued Resolution No. NAC-DGERCGC25-00000003 of 31 January 2025, updating withholding tax rates under monthly self-withholding obligation for large taxpayers. The self-withholding obligation is a credit
Read More Ecuador announces VAT exemption for pet food from February 2025
February 06, 2025
The Ecuadorian Internal Revenue Service (SRI) announced that pet food, including nutritionally balanced dry and wet food, will be exempt from VAT on 30 January 2025. This applies to both imported and locally purchased products, as they are
Read More Ecuador updates tax haven and preferential regime guidelines
January 29, 2025
Ecuador's Internal Revenue Service (SRI) has published Circular NAC-DGECCGC25-00000002 on 21 January 2025, outlining new guidelines for identifying tax havens, preferential tax regimes, and low-tax jurisdictions. A regime or or jurisdictions
Read More