Ecuador to apply VAT on digital services from September 2020

1 September 2020

From 16 September 2020, Ecuador will impose VAT at 12% on the sale of e-services to local consumers by non-resident businesses. 

At present, non-resident businesses providing digital services in Ecuador do not have to charge VAT on their sales. However, to remove the unfair advantage this gives to non-resident companies over Ecuadorian resident providers, the Ecuadorian tax authorities have confirmed that VAT will be charged at 12% on these types of transactions from September.

This will be applied to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and 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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