Ecuador Gazettes Resolution Applying Reduced VAT Rate to Tourism Services Due to Coronavirus

The Ecuadorian Official Gazette Feb. 9 published Resolution No. NAC-DGERCGC22-00000010, applying the reduced VAT rate for tourism services due to the coronavirus pandemic. The resolution includes measures: 1) applying the reduced 8 percent VAT rate to tourism services during annual listed holidays up to a maximum of 12 days; 2) defining activities that constitute tourism services and activities subject to the 12 percent VAT rate; 3) establishing rules for sales invoice issuances and necessary supporting documents; 4) clarifying the effect of the reduced VAT rate on tax credits, refunds, and expenses; and 5) explaining the required format for sales invoices ...