12% VAT causes a price readjustment in Ecuador

Ecuadornews:

A chain of appliance stores yesterday and offered to return the 2% VAT to its customers, anticipating the reduction that from now on applies to all goods and services that are taxed with this tribute.

The validity of the one-year VAT hike ended yesterday, established by the Organic Law of Solidarity and Citizenship Co-responsibility for the Reconstruction of the areas affected by the earthquake of April 16, 2016, raising the tax rate from 12% to 14%.

In ten months that increase of two points meant revenues of $ 681.9 million for the State, and the Internal Revenue Service estimated that $ 800 million were collected in one year (I).

Source: http://www.eluniverso.com/noticias/2017/06/01/nota/6209218/precios-se-reajustan-regreso-iva-12