- Ecuador’s Internal Revenue Service (SRI) has issued Circular NAC-DGECCGC24-00000005, which clarifies invoice/receipt requirements for land transport services in relation to the deduction of costs incurred for such services and the application of the 0% VAT rate for such services, with the exception of taxis.
- The circular explains that invoices/receipts for commercial land transport services can only be issued by commercial land transport operators, except taxis, authorized by the competent authority, for the provision of this type of service. Only commercial land transport service costs that are supported by sales invoices/receipts issued by authorized commercial land transport operators may be considered deductible when determining the income tax base.
- The cost of services provided and supported by sales invoices/receipts issued by a natural person and not by an authorized operator will be considered non-deductible. The 0% VAT rate for land transport services may only be applied if supported by invoices/receipts issued by commercial land transport operators authorized by the competent authority, for the provision of this type of service. Circular NAC-DGECCGC24-00000005 was issued and signed on 15 August 2024.
Source Orbitax
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