Ecuador switches to VAT registrations from withholding VAT for non-residents digital service providers

31 January 2025

A new law, passed in Ecuador during December 2024, imposes VAT registration obligations for foreign providers of electronic services to consumers.

Previously VAT on these types of transactions was withheld and paid to the tax authorities (Servicio de Rentas Internas, SRI ) via payment providers including banks and credit card providers. However, from December 2024, affected businesses are required to VAT register from the first sale that they make to account for VAT at 15% themselves.

This applies to a range of electronic services including:

  • Streaming games
  • Music
  • Apps
  • Films
  • E-books and e-journals
  • Internet services.

Are you trading globally? Whether you require basic VAT advice or specific VAT compliance support, Fiscal Solutions can help. Our team of multi-lingual experts are knowledgeable in all the different VAT rules in Europe and around the world.

We help you simplify today’s complexities and address tomorrow’s challenges. The values we represent, and our consistent advice, mean you can trust Fiscal Solutions to do the right thing – for you and your organisation.

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