Imported digital services will pay VAT in Ecuador

The South American country announced through the Presidency's Communication Secretariat that the measure will apply to services or applications such as Netflix, Zoom or Spotify

As of this Wednesday, September 16, imported digital services, as well as applications, will begin to be recorded with the Value Added Tax (VAT) in Ecuador.

As announced by the Ministry of Communication of the Presidency, from this Wednesday the payment of 12% VAT will be applied to services such as Netflix, Spotify, Zoom. However, it was known that there are about 180 platforms, whose services will be taxed. Thus, Facebook, Google, Amazon Prime, PlayStation Network, Twitter, Tinder, Badoo, Skype, Kaspersky, Zoom.Us, Flickr, among others, are added to the aforementioned, as well as online games.

The tax measure is “a rule that formalizes the payment of VAT on the importation of digital services as established by the Organic Law of Tax Simplification and Progressivity and the Internal Tax Regime, the source explained,” according to the Ecuadorian authorities.

With respect to the services of web pages domains, servers and storage in the cloud, the tax will be 0%. In the case of those from abroad, the VAT payment can be done with credit cards or will be assumed by the importer or client.


Source: bancaynegocios

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