The increase in value added tax (VAT) from 12% to 15% is the proposal of President Daniel Noboa in the Organic Law on Confrontation with Internal Armed Conflicts, Social and Economic Crisis, which he sent to the National Assembly on Thursday, January 11 evening.
According to the Government, the measure does not affect products from the basic basket, as well as medicines, basic services (water, electricity, telephone), transportation, healthcare, education, apartment rental, etc. This is because they are taxed at a rate of 0 %, that is, they do not pay VAT.
These are items on which VAT is not payable, according to the guide for taxpayers of the Tax Administration (UPU), which cites Articles 55 and 56 of the Law on the Internal Tax Regime:
Products
Services taxed at a VAT rate of 0%.
In Article 56, the following services have a zero rate:
Source: Eluniverso
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