Ecuador 2025: New SRI Changes for VAT Reporting

• The SRI has updated the form for reporting exempt transactions from the ISD or IVA.
• The ISD rate for 2025 has changed, with a 0% rate for the pharmaceutical sector and a 2.5% rate for other productive sectors starting in April 2025.
• The general ISD rate remains at 5%, but the productive sector sees this as a cost increase due to the removal of the tax credit for the Income Tax.
• The IVA on pet food has been eliminated, effective February 2025.
• The updated form requires taxpayers to declare transfers abroad related to imports from the pharmaceutical sector and other productive sectors benefiting from the ISD rate reduction.
• To access the ISD exemption, taxpayers must present a legible printout of the form to the financial institution handling the transfer.
• To complete the form, taxpayers must log into the SRI online portal, select Declarations, then Tax Declaration, then Preparation and Submission of Declarations, and finally choose Informative Declaration of Exempt, Non-Subject or Differentially Rated ISD or IVA Transactions.
• The updated form facilitates the application of the new ISD rates and the elimination of the IVA on certain goods.
• Taxpayers should stay informed about these changes and comply with the requirements to benefit from these tax provisions.
• For more information, consult the SRI or a specialized tax advisor.

Source: russellbedford.com.ec

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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