Orbitax subscribers can now easily follow the latest COVID-19-related tax measures being implemented worldwide. New to Orbitax? Create a free account to access your dashboard and latest tax news.
News Share

The Tax Hub

Daily Tax Newsletter


Responsive image

Ecuador Issues Rules for Withholding VAT on Digital Services

Ecuador has published Resolution No. NAC-DGERCGC20-00000053 of 22 August 2020, which establishes rules for the withholding, declaration, and payment of VAT on the import of digital services provided by non-residents to residents or permanent establishments of non-residents in Ecuador. Regulations for implementing the levy of VAT on digital services were introduced by Executive Decree No. 1114 with effect from 16 September 2020 (previous coverage).

The Resolution includes that Ecuador's Internal Revenue Service (SRI) will maintain a registry of digital service providers on their website (, which will be updated on a quarterly basis by the 15th of January, April, July, and October of each year. This registry differentiates non-resident providers registered with SRI and providers domiciled in Ecuador from other providers for which withholding by credit or debit card issuing companies applies. Any updates made to the registry will apply from the first working day of the month following the date of the update.

An initial registry of digital service providers for the purpose of the new rules has been published, which will be updated to 10 September 2020 with information on providers that have chosen to register with the SRI. According to a transitional provision of the Resolution, the updated registry will apply from 16 September 2020, with the next update to be made on 15 January 2021.

With respect to withholding on the import of digital services, the Resolution provides that where the provider of an imported digital service is not registered with the SRI, the VAT generated on the service shall be withheld by:

  • the intermediaries involved in the payment process, i.e., credit and debit card issuers, based on the registry of digital service providers published by the SRI on its website; and
  • the importer of the service when the payment is made without an intermediary, with the importer of service required to withhold 100% of the VAT generated even if the non-registered digital service provider is not found in the registry published by the SRI.

With respect to the declaration and payment of VAT, the Resolution provides that credit or debit card issuers acting as withholding agents are required to declare and pay the VAT withheld on a monthly basis in the form provided for the declaration and payment of VAT, within the standard time limits. Where the importer performs VAT withholding, the VAT shall be declared and paid with their VAT return.

Powerful Tax Tools


FX Rates

Global FX Rates including Tax Year Average FX Rates and Spot Rates for all Reporting Currencies.


Corporate Tax Rates

Corporate tax rates, surtaxes, and effective tax rates for the current year, as well as historical rates and approved future rates.


Country Analysis

Detailed tax guidance for companies doing business in over 100 countries, including summaries and snapshots of key tax facts and issues.


Cross Border Tax Calculator

Calculate total tax costs and benefits of a cross border transaction including withholding tax, participation exemption and foreign tax credit rules.


Cross Border Tax Rates

Provides Domestic, treaty and EU cross border tax rates for over 5,000 country combinations for 9 different payment streams.



Complete overview of the OECD BEPS Project, including daily BEPS news, country adoption of BEPS measures, and an overview of the 15 BEPS Actions.


Tax Calendar

Customizable calendar tool that tracks corporate income tax, value added tax and transfer pricing obligations by country or entity.


Tax Forms

English translations of key tax forms for over 80 countries, including tax return forms, treaty benefit forms, withholding tax forms, and more.


Worldwide Tax Treaties

Repository including thousands of tax treaties (in English), OECD, UN and US Models, relevant EU Directives, Technical Explanations, and more.


Worldwide Tax Planner

Calculates the worldwide tax cost of what-if scenarios based on legal entity structure, taxable income, and cross border transactions.


Certified Rates Report

Customizable Certified Rates Report providing updated corporate and withholding tax rates at the end of each month for over 100 countries.


Withholding Tax Minimizer

Enables quick calculation of tax costs and benefits of cross border transactions considering all possible transaction combinations and optimal routes.


VAT Rates

Provides value added tax (VAT) rates, goods and services tax (GST) rates and other indirect tax rates for over 100 countries.


NOL Calculator

Country specific calculator to determine how net operating losses can be utilized in carryback and carryforward years.


Transfer Pricing Calculator

Calculates TP ratios under various TP methods and calculates the difference between target ratios and actual ratios.


Individual Income Tax Rates

Individual tax rates for over 100 countries.

Play of the Day

Worldwide Tax Treaties

Repository including thousands of tax treaties (in English), OECD, UN and US Models, relevant EU Directives, Technical Explanations, and more.

We’re here to help

We’re here to answer any questions you have about the Orbitax products and services.

Send us a message

Who’s behind Orbitax?

We’re committed to providing high value, low cost tax research and management solutions.

Learn More