Ecuador announced a temporary reduction of the general VAT rate for tourist services from 15% to 8% during the New Year holiday period (1–4 January 2026). The reduced rate applies to a wide range of tourist activities defined under Article 5 of the Tourism Law, including accommodation, food, entertainment, transport, and event services.
From 1–4 January 2026, the general VAT rate for tourist services in Ecuador is reduced to 8% from the usual 15%.
The reduction covers activities classified as tourist services under Article 5 of the Tourism Law, including spas, hot springs, tourist recreation centres, accommodation, food and beverage, entertainment, tourist agency services, tourist transportation, event organisers, convention centres, reception halls, banquet halls, tourist guidance services, community tourism centres, theme parks, and permanent attractions.
The temporary reduction applies from 1 January to 4 January 2026.
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