Quick overview
| Standard Rate | Reduced Rate | Other Rates |
| 15% | N/A | Zero-rated (0%) and exempt |
The local name for VAT in Ecuador is Impuesto al valor agregado (IVA).
There is basically 1 VAT rate in Ecuador:
- Standard VAT rate is 15% since April 1, 2024 (it was 12% before)
Recent developments
For more information about (recent) rate change developments in Ecuador, please click HERE.
Standard rate: 15%
This rate applies for all transactions that take place in Ecuador, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).
Zero rate (0%)
- Unprocessed food
- Agricultural goods and equipment
- Drugs and veterinary products
- Paper, newspapers, magazines, books and publishing services
- Exported goods
- Transport of persons and materials and air cargo transport
- Education
- Health services
- Public supply of electricity, drinking water and sewerage services
- Rent for housing purposes
- Financial securities exchanges
- Engery saving material (Solar panels, LED lamps)
- Electric vehicle chargers
Exempt supplies, without the right to deduct VAT
- Business re-organizations (sale of a business, mergers, etc_
- Donations to charities
- Transfers of stock, shares
- Real estate rental payments and maintenance costs
A global VAT/GST rate overview can be found here (note this is a work in progress).
This post was last updated on August 27, 2024.
