Starting on Thursday, June 1, TAX in Ecuador drops to 12% and tariffs that recorded between 5 and 45% to 2,961 sub-items disappear, which will be reflected in a significant decrease in prices to the final consumer.
Wednesday 31 May will be the last day that will govern the temporary increase of two points of value added tax. At the same time, balance of payments safeguards will also lapse.
The first measure was adopted in May 2016 in the Solidarity Law as one of the tools to raise funds for the reconstruction of the areas affected by the earthquake on 16 April. It had national validity, with the exception of the provinces of Manabí and Esmeraldas.
The norm establishes that after one year the VAT returns to its habitual rate of 12%. In the course of this time, the Internal Revenue Service (SRI) reports a collection of approximately $ 681 million, only for the additional 2%.
As of June 1, the goods and services that tax the tax will return to the prices they had before the increase. The reduction must be immediate told to this newspaper SRI director, Leonardo Orlando.
That is, for example, if a television is currently valued at $ 912, including 14% TAX, since Thursday the price should decrease to $ 896.
Internal Revenue yesterday clarified, with a statement, that the sales receipts that have printed the rate of 14% will continue to be valid until they expire. The registration of 12% of VAT can be done manually, without clearing the previous percentage. It will also apply for credit and debit notes.
Also, merchants of goods that purchase products with 14% until May 31, must sell them at a rate of 12% from June 1 if they were left in stock. The two TAX points you paid will be considered as tax credit in your favor.
The Solidarity Law also provides for the return of four TAX points for the payments canceled with Cash from my Mobile (electronic money) and a point for payments made with credit, debit or prepaid card.
From Thursday the return for using electronic money will be two points. Until May 31, SRI will make a cumulative refund for card users who open an Cash account from my Mobile and register consumption from September 2016.