VAT Rate Adjusted for Economic Stability

• Ecuador’s Legislature swiftly approved a Tax Reform in response to the declared Internal Armed Conflict, with subsequent issuance by the President.
• The Tax Reform introduces adjustments to tax rates, including an increase in the Value Added Tax (VAT) rate, now set permanently at 13% but temporarily increased to 15% effective April 1, 2024.
• The Remittance Tax rate has also been raised from 3.5% to 5% for cross-border currency transfers, with flexibility for sector-specific modifications within the maximum 5% rate stipulated by law.

Source GlobalVATcompliance

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• Join our Linkedin Group on ”VAT Rates – Legislative changes”, click HERE
• Global Upcoming VAT Rate changes – Chronological, click HERE

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