Ecuador’s tax administration (SRI) has released a new version 2.21 of the guide containing the electronic invoicing system’s User Manual, Catalog, and Technical Specifications. Several significant changes have been made in this new version, which are worth mentioning:
1. New Annex 22: This new annex is intended to specify the additional requirements that taxpayers under the Simplified Regime for Entrepreneurs and Popular Business (locally known as Regimen Simplificado para Emprendedores y Negocios Populares – RIMPE) must meet when issuing invoices. The new requirement is to include the legend “CONTRIBUYENTE REGIMEN RIMPE” on those invoices, indicating their affiliation with that regime.
2. ISD and VAT Withholding Percentages: Updated percentages of withholding for the Tax on Remittances of Foreign Currencies (Impuesto a la Salida de Divisas – ISD) as approved by Executive Decree 298/2021, as well as the percentages of withholding for the Value Added Tax (IVA).
For the VAT, the percentages will be the following:
3. Update of the Table for the VAT rates: The goal of this change is to allow the use of the new reduced rate of 8% on invoices for certain tourism-related transactions, as defined by Executive Decree 339/2022. A new code 8 (IVA diferenciado) will be used to mark the rate of 8% on those transactions for this purpose.
Please note that, in accordance with Decree 339/2022, the application of the 8% special rate for qualifying tourism-related transactions and services will be permitted ONLY for transactions completed between February 26 and March 1, 2022, as well as transactions completed between April 15 and 17, 2022.
Effective date: between 26 February and 1 March 2022, and between 15 and 17 April 2022