VAT refund benefit will be made through electronic money

With the latest tax reforms approved by the National Assembly, taxpayers will be returned 1% of Value Added Tax (VAT) if they used their a credit or debit card. The 4% return will be made if their purchases were made with electronic money.

These returns will not be made in cash but through electronic money, ie in order to get these benefits, people must open an account of electronic money on their cell phones. This was explained by the general manager of the Central Bank of Ecuador Diego Martinez.

“Taxpayers will receive the VAT refund through their e-money accounts after every consumption. The return is automatic,” he said. But people who receive the VAT refund through their cell phones will be able to exchange it for cash.

Those interested can approach the 19,500 authorized points to redeem that electronic money into cash. The Ministry of Finance will be the body responsible for paying the refund.

Source: http://www.ecuavisa.com/articulo/noticias/actualidad/163596-beneficio-devolucion-del-iva-sera-traves-dinero-electronico