- Temporary VAT Reduction: The Government of Ecuador has ordered a temporary reduction of the Value Added Tax (VAT) from 15% to 8% for tourist services during the 2026 Carnival holiday, as established by Executive Decree No. 304.
- Coverage of Tourist Services: The reduced VAT rate applies to various tourist activities, including accommodation, food and beverages, tourist operations, and transport services, all under the oversight of the Internal Revenue Service and the Ministry of Tourism.
- Validity and Implementation: This VAT reduction is valid only during the specified dates of the 2026 Carnival holiday and will revert to the general VAT rate after the holiday ends. The measure is applicable nationwide for establishments that meet the necessary legal and tax requirements.
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