Ecuador Implements Reduced VAT Rate for Local Construction Material Transfers due to Conflict

• Resolution No. NAC-DGERCGC24-00000013 in Ecuador applies a 5 percent reduced VAT rate to local transfers of construction materials
• The resolution includes measures such as listing the construction materials subject to the reduced rate and providing a three-month transitional period for VAT collection agents to update their electronic receipt systems
• The reduced rate can be deducted on the income tax return as an expense if not compensated
• The resolution enters into force on April 1, 2024

Source: news.bloombergtax.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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