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Ecuador VAT rise to 14%

  • VAT
  • 22 April 2016 | Richard Asquith

Ecuador VAT rise to 14%

Ecuador has announced plans to increase its VAT rate from the current 12% to 14%.

The rise is part of a package to help fund the rebuilding of part of the country following the recent earthquake. This has led to damage estimated at up to $3 billion. This comes on top of falling government revenues from the sharp decline in global oil prices.

The VAT rise is only scheduled to be in a place for 1 year.

To pay for the repair of infrastructure (roads, bridges etc.), the VAT rise will come with a new bond issue and other tax increases.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.