Ecuador has announced a temporary VAT reduction on tourism-related services, lowering the rate from 15% to 8% from 1 to 4 November 2024. This initiative aims to promote tourism during the upcoming national holidays.
The measure, outlined in Decree No. 429, was published in the official gazette on 21 October 2024.
The VAT reduction applies to various tourism activities, including accommodation services, food and beverage offerings, and transportation for tourism purposes. It also covers travel agency operations and services provided by casinos and amusement parks.
Tourism service providers are required to issue invoices reflecting the new 8% VAT rate for services rendered during this period.
