Ecuador is gearing up for another long holiday that will see the latest reduction in Value Added Tax (VAT) from 12% to 8%.
Decree 644 establishes holidays on which all services defined as tourist activities will be reduced. The measure was already applied during Easter and Carnival.
The Tax Administration (SRI) reminded that from November 2 to 5, a reduction will be made in order to promote tourism.
The measure will apply to duly registered establishments such as restaurants, hotels and air transport.
Remember that for these November holidays VAT is set at 8%
This measure promotes tourism and will include duly registered tourist facilities such as:
➡️Restaurants
➡️Hotels
➡️Air transport pic.twitter.com/y0HxSVCO9x— SRI Ecuador (@SRIoficialEc) October 23, 2023
In the last register, there were more than 23,000 facilities authorized to reduce the rate. This is the last VAT reduction to be implemented this year, and a new regulation is required to determine the new dates.
The Law on Economic Development and Fiscal Sustainability, adopted in 2021, authorizes the President to decide by decree to reduce VAT from 12% to 8%, on certain dates, which may be holidays or weekends and which may not exceed 12 days a year.
Source: Eluniverso
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