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 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 for "large taxpayers." The SRI defines companies as “large taxpayers”. The self-withholding obligation
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 Ecuador introduces rules for new payment plan under relief law
January 24, 2025
Ecuador's Internal Revenue Service (SRI) released the Resolution NAC-DGERCGC25-0000000001, on 6 January 2025, which allows taxpayers with outstanding tax balances as of 31 October 2024 to apply for an optional 12-month payment plan with interest
Read More Ecuador, UK income and capital tax treaty enters into force
January 20, 2025
The income and capital tax treaty between Ecuador and the UK entered into force 19 December 2024. Earlier, Ecuadorian President Daniel Noboa signed a decree ratifying the income and capital tax treaty with the UK on 13 December 2024. The
Read More Ecuador imposes new tax on vehicle transfers to curb money laundering
December 20, 2024
Ecuador has enacted the Decree Law on the Organic Law for Improving Tax Collection through Combating Money Laundering on 10 December 2024. The Law introduces a new tax of up to 5% on used vehicle transfers, which must be paid by buyers, including
Read More