IN radio interviewthe director of the Tax Administration (SRI), Damián Larco, announced that the value added tax will be reduced during the carnival holidays in certain companies.
Last year, during the government of Guillermo Lasso, VAT reduction was applied during four holidays (Carnival, Easter, All Souls’ Day and the Independence of Cuenca) in tourism activities. The decree specifies the dates on which the reduction will take place.
With no certainty of votes, the National Assembly opens a debate on an emergency law that increases VAT at two different times
The measure that supported this reduction was the third general provision of the Organic Law for Economic Development and Fiscal Sustainability after the COVID-19 Pandemic, which authorized the President by executive decree to reduce the general VAT rate from 12% to 8%. % in the provision of all services defined as tourist activity in accordance with Article 5 of the Act on Tourism.
“It remains the same, when there are holidays, the VAT rate will drop to 8 percent, it remains the same,” specified Larco.
Holbach Muñeton, president of the Ecuadorian Federation of Tourist Chambers, clarified that they had not been informed of the measure.
“We in the industry don’t know,” he added.
The measure will apply to duly registered establishments such as restaurants, hotels and air transport. In the last register, more than 23,000 facilities authorized for rate reduction were listed.
Source: Eluniverso
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