Ecuador raises its general IVA rate to 13% and lets the President set it anywhere from 13% to 15%

What changed in detail

The Ley Orgánica para Enfrentar el Conflicto Armado Interno, la Crisis Social y Económica was published on 12 March 2024 in the Suplemento del Registro Oficial No. 516.

It set Ecuador’s general IVA rate at 13%, up from 12%, and wrote a new power into the law: based on public-finance and balance-of-payments conditions, the President may modify the general IVA rate after a favourable opinion from the governing body of public finances (the Ministry of Economy and Finance). In no case may the rate be lower than 13% or higher than 15%, except as the law itself provides. The Ministry describes the increase as three points in total: one permanent point (12% to 13%) and two temporary points within the executive’s competence.

The same law introduced a differentiated 5% IVA rate for materials and inputs used in construction and real-estate development. Its other fiscal measures were outside IVA: the currency-outflow tax (ISD) rose to 5%, a one-off 3.25% security contribution applied to 2022 taxable profits, and a temporary contribution of 5% to 25% applied to the profits of banks and savings cooperatives.

According to the SRI, the law’s IVA rate provisions, including the 5% construction rate, apply from 1 April 2024.

What it means

This law created the 13–15% band. The 15% rate itself came from a decree: Decreto Ejecutivo 198 applied it for 2024, and Decreto Ejecutivo 470 kept it for 2025. An SRI circular of 2 April 2026 (NAC-DGECCGC26-00000005) still calls 15% the rate in force.

The band is still law, so the general rate can move anywhere between 13% and 15% by executive decree, without a new statute. Invoicing and ERP systems should treat the general rate as a parameter that can change at short notice. The pre-2024 12% rate is gone: 13% is now the floor.