Ecuador Gazettes Circular Clarifying VAT for Digital Service Providers, Intermediaries, Consumers

The Ecuadorian Official Gazette March 31 published Circular No. NAC-DGECCGC26-00000004, clarifying VAT treatment for digital service providers, intermediaries, and consumers. The circular clarifies that: 1) a 15 percent VAT rate applies to digital services, which includes online video games provided through payment, subscription, or download, sports predictions offered through virtual foreign or domestic platforms, and streaming of sporting events as part of contracted digital services; 2) for nonresident digital service providers using a financial intermediary, like a bank or credit card issuer, the intermediary must withhold the 15 percent at the time of payment; 3) resident digital service providers are ...