He The Internal Revenue Service (SRI) provided three conditions in order for the event to be considered artistic and cultural and therefore still have 0% value added tax (VAT). SRI has already managed to reach an agreement between the Ministry of Culture and the Legal Secretariat of the Presidency, which defined the topic. This will be published in the next few days via a executive decree issued by the Presidency Republic. This was explained to this newspaper by Internal Revenue Director Francisco Briones.

It is yes of validity Organic legal decree for strengthening the family economy, July 1, 2023. VAT was increased from 0% to 12% for public events, but artistic and cultural events remained at 0%. However, it is not clear which events are considered artistic and cultural and continue with the rate of 0 percent, and which, since they are public performances, will have an increase of 12 percent, especially the entrance fees.

He The director of SRI, Francisco Briones, reported that there were three The conditions that an event must meet in order to be considered artistic and cultural are:

The Director of the Institute explained that in order to establish these conditions, it is necessary to understand that the law already establishes the separation of public performances from artistic and cultural events. Both had 0% VAT. But now only cultural manifestations will have 0%, and everything else that is not culture must pay 12%.

The list of public events that will have a VAT of 12 percent includes, among others, concerts, sports events, fairs.

Additionally, in the case of artistic and cultural cinema spaces, parameters have also been established. For example, they should not charge 12% of the site for cultural cinemas if they have up to three halls. If they exceed that number, they will pay VAT of 12%.

Since the entry into force of the law, commercial cinema chains have already started charging consumers with VAT of 12 percent. In other words, tickets went up by that percentage. However, venues such as the 8ymedio cinema did not start increasing ticket prices and announced on social networks that their tickets did not increase in price. 8ymedio is – as they say – a cultural organization founded in 2001 by a group of film producers, filmmakers and artists interested in promoting film culture.

In this case, they only have two rooms in the traditional neighborhood of La Floresta in Quito. In 2003, this foundation also created MAAC Cine cinemas in Guayaquil and Manta (2007), and in 2012 I love cinemain the city of Cotacachi, all under the technical and programming model 8ymedio.

Briones has not yet determined the date when the executive decree will come out, but they explained that it is already in the stage of internal procedures, in issuing opinions and appropriate reports.