Understanding Ecuador VAT Filing and Deadlines

Everything you need to know about filing your monthly VAT return in Ecuador accurately and on time.

Updated 3 months ago

Once you are registered for VAT in Ecuador, you are required to file a monthly VAT return and remit any tax collected. This article explains the filing process, deadlines, what to include in your return, and the penalties for late filing.

Filing Frequency

All registered taxpayers in Ecuador, both resident businesses and non-resident remote sellers, are required to file monthly VAT returns. There is no quarterly or annual filing option.

Filing Deadlines by Registration Type

Detail	Resident Business (Standard)	Non-Resident Remote Seller (Simplified)
Filing Frequency	Monthly	Monthly
Form Name	IVA Monthly Return (General VAT Return)	IVA Monthly Return (specific to non-residents)
Filing Deadline	10th to 28th of the following month, determined by the 9th digit of your RUC (Tax ID).	15th of the following month.
Payment Deadline	Same as filing deadline (10th to 28th of following month).	Same as filing deadline (15th of following month).
Nil Return Required?	Yes. A nil return must be filed even in months with no taxable activity.	Yes. A nil return must be filed even in months with no taxable activity.
Weekend / Holiday Rule	If the due date falls on a Saturday, Sunday, or public holiday, it moves to the next business day, unless that shift would push into the next month, in which case it moves back to the last business day of the current month.	Same rule applies.

NOTE: For resident businesses, your specific filing deadline is determined by the 9th digit of your RUC. Deadlines range from the 10th to the 28th of the following month.

What to Include in Your VAT Return

Line Item	Resident Business	Non-Resident Remote Seller
Total Sales	Report all gross revenue from B2B and B2C sales within Ecuador.	Report only gross B2C sales. B2B sales are excluded as they fall under the reverse charge mechanism.
Output Tax (VAT Collected)	Report VAT collected on all taxable local supplies.	Report VAT collected on B2C sales only. If unregistered, local banks automatically withhold the VAT.
Input Tax Credits	Report recoverable VAT paid on qualifying local business expenses, such as office rent, local marketing, and servers.	Not applicable. Input tax recovery is $0.00 USD for non-residents.
Adjustments / Credit Notes	Report reductions in output tax by issuing SRI-authorized electronic Credit Notes for refunds or cancellations.	Report adjustments for subscription cancellations or refunds within the simplified digital services VAT return.

Penalties for Late Filing and Late Payment

Penalty Type	Resident Business	Non-Resident Remote Seller
Late Registration	$30.00 to $125.00 USD, up to $1,500.00 USD for large taxpayers.	$30.00 to $125.00 USD, plus risk of being watch-listed (banks withhold 100% of VAT from payments).
Late Filing	3% of the tax due per month of delay, capped at 100% of the total tax due.	3% of the tax due per month of delay on unremitted B2C tax collections.
Interest on Late Payment	Variable rate of approximately 0.9% to 1.1% per month, based on the Effective Reference Rate updated quarterly by Ecuador's Central Bank (BCE).	Same variable BCE rate applies on any late remittance of collected B2C VAT.

Invoicing Requirements

Ecuador has specific invoicing rules depending on your registration type:

Resident businesses are subject to strict e-invoicing requirements through the SRI's XML portal. Invoices must display the seller's 13-digit RUC, and the buyer's RUC (for B2B) or National ID (for B2C).
Non-resident remote sellers using the simplified digital regime are not required to integrate with the SRI's XML e-invoicing portal. Standard PDF invoices or automated payment receipts from your global billing software are compliant, as long as they include your home-country business registration number, your SRI-issued Non-Resident Tax ID, and the buyer's 13-digit RUC for B2B transactions.
Currency: All tax reporting in Ecuador must be in United States Dollars (USD). If your invoice is in another currency, you must state the exchange rate applied and the final tax amount converted into USD.
B2B reverse charge invoices: Must exclude VAT and ideally include a statement such as: Reverse Charge Mechanism Applies. Buyer is responsible for VAT.

Frequently Asked Questions

Q: Do I need to file a return even if I have no sales in Ecuador for that month?

A: Yes. Both resident businesses and non-resident remote sellers are required to file a nil return for any month with no taxable activity. Failure to file, even with zero activity, may result in late filing penalties.

Q: When is my first VAT return due?

A: For non-resident remote sellers, your first return covers the calendar month of your first B2C sale and is due by the 15th of the following month. For resident businesses, the due date depends on the 9th digit of your RUC and falls between the 10th and 28th of the following month.

Q: Can I claim back VAT I paid on business expenses in Ecuador?

A: Only resident businesses with physical presence in Ecuador can claim input tax credits for qualifying local business expenses. Non-resident remote sellers cannot recover local VAT paid in Ecuador.

Q: Does Kintsugi handle my Ecuador VAT filings?

A: Yes. Kintsugi manages your Ecuador VAT filings as part of your compliance workflow, including calculating the correct amounts, preparing your monthly return, and ensuring timely submission. If you have questions about your specific setup, reach out to Kintsugi support.