Ecuador VAT on e-services
- Dec 6, 2019 | Richard Asquith
Ecuador has become the latest state to announce plans to levy VAT on the provision of electronic services by non-resident providers to its consumer. This would be the second attempt to extend the Value Added Tax net to foreign digital service platforms following a rejection by the National Assembly.
The proposal would require foreign providers of e-services to VAT register with the Ministry of Revenue. They would then be required to levy 12% VAT, the standard rate, on all income. E-services will include web-based services and SaaS computing offerings.
The tax raising plan will help contribute towards an International Monetary Fund loan request. The failure to pass an earlier package in November sent bonds to record lows and threatened the survival of the IMF agreement.