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.
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