Ecuador Gazettes Resolution Applying Reduced VAT Rate to Local Transfers of Construction Materials

The Ecuadorian Official Gazette April 1 published Resolution No. NAC-DGERCGC24-00000013, applying a 5 percent reduced VAT rate to local transfers of construction materials, due to internal armed conflict. The resolution includes measures: 1) applying the reduced rate to local transfers of construction materials, which can be deducted on the income tax return as an expense if not compensated; 2) listing the construction materials subject to the reduced rate; 3) specifying the procedure for issuing electronic invoices; and 4) providing a three-month transitional period for VAT collection agents to update their electronic receipt systems with the codes for applying the reduced ...