The standard VAT rate in Ecuador is 12% on most goods and services.

Yes, essential goods like certain food products and medicines may be zero-rated (0% IVA).

VAT is calculated as a percentage of the sale price of taxable goods or services. For example, 12% of $100 equals $12 IVA.

Yes, by law, consumer prices must include VAT in Ecuador.

Yes, tourists pay VAT when purchasing goods or services. Ecuador does not currently offer tourist VAT refunds.

Businesses that sell taxable goods or services must register for VAT if they exceed the legal revenue threshold.

Education, healthcare services, and some basic food items are exempt from VAT in Ecuador.

Yes, registered businesses can claim credit for VAT paid on inputs used in producing taxable goods/services.

In certain transactions, the buyer must withhold and remit a portion of the IVA directly to the tax authority (SRI).

Most businesses must file monthly VAT returns with the Internal Revenue Service (SRI).

Yes, if their services are taxable and revenue exceeds thresholds, freelancers and small businesses must charge VAT.

Failing to charge VAT can result in penalties, fines, and audits by the tax authority.

Yes, VAT applies to digital goods and services provided within Ecuador, even by foreign companies.

Yes, imported goods are subject to VAT at the same rate as domestic products.

Absolutely. A VAT calculator helps you quickly determine the VAT included or excluded in any transaction.