The collection of VAT applied to imported digital services already has its projection. The Internal Revenue Service (SRI) estimates it will raise about $ 5 million in these remaining months of 2020.
The collection of this tax will begin as of September 16 once the 180 business days of the term established in the Organic Law of Tax Simplification and Progressivity are met.
For fiscal year 2021, the SRI plans to collect 21 million dollars for this new tax , which will apply to audiovisual content, software purchases , educational courses and other services of companies that do not have an address in Ecuador.
The VAT withholding on these services will be made through the credit and debit card issuers.
The law establishes fourteen concepts of digital services, but the SRI may include others by resolution.
These categories include accommodation reservation portals such as Booking and Airbnb.
The SRI indicates that VAT on this type of website will be charged on the additional commission set by these digital service companies and that it is paid in addition to hosting.
Luiz Francisco Bertomeu, Senior Communications Manager at Booking for Latin America, points out that they are evaluating the exact implications both for the company and for partners and clients.
“At Booking.com we are absolutely interested in ensuring our compliance with local laws in Ecuador,” he says.
The SRI has a first cadastre with more than 200 digital service providers operating in the country. There is even GolTV .
That soccer channel was included, according to the SRI, because the Internal Tax Regime Law states that the registry of digital service providers must be published, but does not mention that only those who are non-residents are published.
The entity indicates that there will be a definitive cadastre that will be published next week with which the VAT collection will begin.
Foreign companies that are domiciled in the country must apply the regulations that already existed previously to declare and pay VAT in the event that they are subject to a 12% rate of that tax. (I)