VAT rates in Ecuador

Quick overview

Standard Rate	Reduced Rate	Other Rates
15%	N/A	Zero-rated (0%) and exempt

The local name for VAT in Ecuador is Impuesto al valor agregado (IVA).

There is basically 1 VAT rate in Ecuador:

• Standard VAT rate is 15% since April 1, 2024 (it was 12% before)

Recent developments

For more information about (recent) rate change developments in Ecuador, please click HERE.

Standard rate: 15%

This rate applies for all transactions that take place in Ecuador, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).

Zero rate (0%)

• Unprocessed food
• Agricultural goods and equipment
• Drugs and veterinary products
• Paper, newspapers, magazines, books and publishing services
• Exported goods
• Transport of persons and materials and air cargo transport
• Education
• Health services
• Public supply of electricity, drinking water and sewerage services
• Rent for housing purposes
• Financial securities exchanges
• Engery saving material (Solar panels, LED lamps)
• Electric vehicle chargers

Exempt supplies, without the right to deduct VAT

• Business re-organizations (sale of a business, mergers, etc_
• Donations to charities
• Transfers of stock, shares
• Real estate rental payments and maintenance costs

A global VAT/GST rate overview can be found here (note this is a work in progress).

This post was last updated on August 27, 2024.

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