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Ecuador VAT (IVA) Guide 2026

Ecuador's value-added tax (Impuesto al Valor Agregado, IVA) is set at a standard rate of 12%. Reduced rates of 0% apply to exports, basic food items, education, health, and medicines. IVA returns are filed monthly through the SRI portal.

Overview — IVA 12%

The IVA (Impuesto al Valor Agregado) is Ecuador's consumption tax, applied to the sale of goods and provision of services. The standard rate is 12%. Certain goods and services are taxed at 0% or are exempt. The SRI administers IVA collection. In some years the rate has been temporarily raised to 14% before being reduced back to 12%.

Standard Rate — 12%

The 12% IVA rate applies to most goods and services sold in Ecuador, including:

  • General merchandise and retail goods
  • Professional and technical services
  • Restaurant and hospitality services
  • Vehicle sales
  • Construction services
  • Telecommunications and internet services
  • Imported goods (collected at customs)

Zero-Rated (0% IVA)

The following goods and services are subject to 0% IVA:

  • Exports of goods and services
  • Basic food items: Unprocessed foods, bread, milk, eggs, fruits, vegetables
  • Education services at all levels
  • Healthcare services and medical consultations
  • Medicines and pharmaceutical products
  • Public transportation services
  • Agricultural inputs: Seeds, fertilisers, pesticides
  • Books, magazines, and newspapers

IVA Filing Requirements

Businesses registered for IVA must file monthly returns with the SRI:

  • Returns are filed by the 28th of the following month (based on the ninth digit of the RUC)
  • Form 104 is the standard IVA declaration form
  • Taxpayers must maintain electronic sales records and issue electronic invoices
  • IVA credits (input VAT) can be offset against IVA debits (output VAT)
  • Net IVA payable is remitted with the monthly declaration

IVA Registration

All businesses with annual revenue exceeding the threshold set by SRI must register for IVA. Registration is obtained through the SRI online portal and requires a RUC (Registro Único de Contribuyentes).

FAQs

Can I recover IVA paid on business expenses?

Yes, businesses can credit input IVA paid on purchases against output IVA collected on sales. Excess credits can be carried forward or claimed as a refund.

Is there a reduced IVA rate?

An 8% reduced rate has been applied temporarily in certain periods. Currently the standard rate is 12%, with 0% for basic necessities and exports.

Are digital services subject to IVA?

Yes, foreign digital service providers may be required to register and charge IVA on services provided to Ecuadorian consumers.

Disclaimer

This guide provides general information about Ecuador IVA for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Ecuadorian tax advisor or SRI directly.