| Update: | Compliance Alert – VAT rate reduced for tourism activities |
| Date: | 2024-10-25 |
On 21 October 2024, the Ecuadorian government signed Decree No. 429/2024 into law. The decree stipulates a nationwide reduction in the VAT rate from 15% to 8% for tourism activities performed from 1 November to 4 November 2024.
The reduction is to promote tourism during the national holidays on said dates.
As defined in the Tourism law, tourism activities covered by the reduction include:
- Accommodation;
- Food and beverage services;
- Transport for tourism purposes, including air, sea, river, land transport, and vehicle rental;
- Tourist operation, when travel agencies provide their transport, this activity will be considered part of the agency;
- Intermediation company, tourist services agency, and organizers of congress and convention events;
- Casinos, game rooms, racetracks, and stable attraction parks.