---
oa_review_kit: v1
guide_slug: ecuador-iva
guide_version: ecuador-iva@2026-04-13T17:53:35.162Z
archetype: vat_gst
---

# Review kit: Ecuador IVA

Thank you for reviewing this Guide. This kit is one file with three parts: how
to use it, an interview prompt for your AI, and the Guide itself.

## How to use this kit (3 steps, about 15 minutes)

1. Open the AI you already use (ChatGPT, Claude, Gemini, anything that reads
   markdown) and paste in everything from "INTERVIEW PROMPT" below, including
   the Guide at the end.
2. Your AI interviews you like a colleague, one question at a time. Just talk:
   war stories, walk-throughs, the mistakes you catch. No writing required.
3. Your AI writes your answers up as a single markdown file. Hand it back at
   openaccountants.com/skills/ecuador-iva/handback (also linked from the Guide
   page: "Hand back your file"). What you added is published under your name
   and credential.

If your AI cannot produce the exact output format, hand back whatever you have:
a revised Guide file, a worksheet, or plain notes. We take those too, and a
person reviews them by hand. The format below is the one we can apply straight
away.

---

# INTERVIEW PROMPT (paste from here down into your AI)

You are interviewing a practising accountant about how they actually do the
work covered by the attached Guide ("Ecuador IVA", slug `ecuador-iva`).
Interview them like a colleague doing a handover. Do not lecture. Ask ONE
question at a time and wait for the answer. Chase war stories and specifics:
what kind of client, which portal step, how big the penalty was.

The rates, thresholds, and citations are our job; we refresh those from primary
sources. Capture ONLY what is NOT derivable from law:

- order of operations, and what a wrong order corrupts
- what to ask a client before computing anything
- what to assume when a fact is unknown, and how it gets flagged
- the most-missed traps, with penalty size and who falls in
- how the portal or filing channel actually behaves
- what has to reconcile before anyone signs
- when to refuse the work and hand it to a human specialist

If the accountant corrects a rate, threshold, or deadline in the Guide along
the way, record it in the FACT CORRECTIONS table, but do not steer the
interview toward numbers.

## Questions to work through

Ask these in order, one at a time. Skip any the accountant has already covered;
follow up where a story has specifics worth pinning down. Each question is
tagged with the method slot(s) it feeds.

1. [sequence] Walk me through the last VAT return you prepared, start to finish. What did you open first, and why that order?
2. [intake_questions] [evidence] A new client hands you nothing but a bank statement. What do you do before you'll classify a single line?
3. [pattern_library] Which bank-statement line gets misclassified most often in your experience? What does it look like and where should it actually go?
4. [scope_gate] Tell me about a client you refused or referred out. What about their VAT situation made you stop?
5. [trap] When you review a return someone else drafted, what mistake do you catch most often?
6. [conservative_default] When you can't tell if a sale is domestic or cross-border, what do you assume, and how do you mark it?
7. [cross_check] Before you sign, what has to reconcile with what, and how close is close enough?
8. [filing_mechanics] Walk me through filing on the actual portal. What surprises first-timers: the order of forms, what locks, what you can't undo?
9. [judgment_rule] Ever had a client on a simplified scheme where the "simplification" made things worse? How do you decide who belongs on it?
10. [trap] What's the real penalty story you tell clients, the one that actually happened?
11. [evidence] Which claims will you draft from a bank statement but never file without the underlying paper?
12. [unsettled_law] Anything in VAT right now you deliberately won't finalise because the rules are moving?

## Method slots (for tagging the write-up)

- `scope_gate` (Scope gate and refusals): when to stop and send the client to a human
- `sequence` (Order of operations): what order to do things in, and what a wrong order corrupts
- `intake_questions` (Client intake questions): what to ask a client before computing
- `evidence` (Documents and evidence): which documents to insist on, and what is draft-grade vs file-grade
- `judgment_rule` (Judgment rules): how a practitioner actually picks when the law allows two routes
- `conservative_default` (Conservative defaults): what to assume when a fact is unknowable at draft time
- `trap` (Traps and most-missed items): the mistakes everyone makes, what they cost, and who falls in
- `filing_mechanics` (Portal and filing mechanics): how submission actually works: channel, order, what locks
- `cross_check` (Cross-checks before signing): what has to reconcile with what before delivery, and how close is close enough
- `pattern_library` (Pattern library): how messy real-world data (bank lines, payout platforms) maps to tax categories
- `edge_case` (Edge-case playbook): the client situations that change the method, not just the numbers
- `unsettled_law` (Unsettled-law flags): what not to finalise right now, and why
- `handback_protocol` (Hand-back protocol): what the finished working paper contains and who reviews it

## Output format: oa-handback v1

When the interview is done, write the answers up as ONE markdown file in
exactly this shape. Fill in the reviewer's real name, credential, and email
(ask for them at the end if they have not come up). Every method block gets a
`### [method:<slot>]` heading where `<slot>` is one of the 13 slot ids
above. Keep `guide_slug` and `guide_version` exactly as given. Omit any
section the interview produced nothing for, but keep the headings that remain
exactly as shown. The `fact_key` column may be left blank when unknown.

```markdown
---
oa_handback: v1
guide_slug: ecuador-iva
guide_version: ecuador-iva@2026-04-13T17:53:35.162Z
reviewer_name: <full name>
reviewer_credential: <credential>        # free text: CPA, EA, ACCA, Steuerberater...
reviewer_email: <email>
verdict: <approve | corrections | unable>
---

## METHOD

### [method:filing_mechanics] <short title for this block>
<prose: the method block, written in second person, imperative>

### [method:intake_questions] <short title for this block>
- <question 1>
- ...

## FACT CORRECTIONS
| fact_key | current | correct | source |
|---|---|---|---|
| <fact key if known, else blank> | <value in the Guide> | <correct value> | <cite> |

## FLAGS
- [unsettled] <what not to finalise, and why>
- [refer] <situations to escalate to a human>

## NOTES
<anything that did not fit a method slot or a fact correction>
```

If for any reason you cannot produce this exact format, output the accountant's
corrections and methods as clear plain notes instead. The hand-back page
accepts plain notes and revised Guide files too; this format is an
optimization, never a gate.

---

# THE GUIDE UNDER REVIEW

<!-- guide: ecuador-iva · version: ecuador-iva@2026-04-13T17:53:35.162Z -->

---
name: ecuador-iva
description: Use this skill whenever asked to prepare, review, or classify transactions for an Ecuador IVA (Impuesto al Valor Agregado) return (Formulario 104) for any client. Trigger on phrases like "prepare IVA return", "Ecuador VAT", "Formulario 104", "SRI return", or any request involving Ecuador value added tax filing. This skill covers Regimen General taxpayers only. RIMPE Negocios Populares, oil-sector service contracts, and ZEDE entities are in the refusal catalogue. ALWAYS read this skill before touching any Ecuador IVA work.
jurisdiction: EC
domain: vat-gst
tax_year: 2025
---

# ecuador-iva

## Section 1 — Quick reference

**Quick reference fields**

| Field | Value |
| --- | --- |
| Country | Ecuador |
| Standard rate | 15% (from 1 April 2024; confirmed through 2026) |
| Previous rate | 12% (periods before 1 April 2024) |
| Zero rate (tarifa 0%) | Unprocessed agricultural products, medicines, books, agricultural inputs, basic food basket (canasta basica), public transport, medical services, education, residential rental, financial interest |
| Return form | Formulario 104 |
| Filing portal | https://www.sri.gob.ec (SRI en Linea) |
| Authority | Servicio de Rentas Internas (SRI) |
| Currency | USD (Ecuador uses US dollar) |
| Filing frequency | Monthly (standard); semi-annual (RIMPE emprendedores) |
| Deadline | Depends on 9th digit of RUC (10th-28th of following month) |
| Contributor | Open Accountants Skills Registry |
| Validated by | Pending — requires validation by a licensed CPA in Ecuador |
| Validation date | Pending |

**Key Formulario 104 lines**

| Line | Meaning |
| --- | --- |
| 401 | Taxable sales (excl. fixed assets) — tarifa diferente de 0% |
| 402 | Sales of fixed assets — taxable |
| 403 | Tarifa 0% sales (no credit right) |
| 404 | Tarifa 0% sales (with credit right) |
| 405 | Exports of goods |
| 406 | Exports of services |
| 409 | Total sales |
| 411 | Output IVA (IVA generado en ventas) |
| 500 | Taxable purchases (excl. fixed assets) |
| 501 | Fixed asset purchases — taxable |
| 502 | Non-taxable purchases |
| 503 | Taxable imports |
| 504 | Fixed asset imports — taxable |
| 510 | Input IVA on purchases |
| 511 | Input IVA on imports |
| 601 | IVA causado (output) |
| 602 | Credito tributario aplicable (input credit) |
| 605 | Factor de proporcionalidad |
| 699 | Tax payable / credit balance |
| 721 | IVA withholdings received |
| 902 | Total payable |

**Conservative defaults**

| Ambiguity | Default |
| --- | --- |
| Unknown rate on a sale | 15% |
| Unknown IVA status of a purchase | Not deductible |
| Unknown counterparty country | Domestic Ecuador |
| Unknown business-use proportion | 0% recovery |
| Unknown blocked-input status | Blocked |
| Unknown SaaS billing entity | Reverse charge at 15% |

**Red flag thresholds**

| Threshold | Value |
| --- | --- |
| HIGH single-transaction size | USD 5,000 |
| HIGH tax-delta on a single conservative default | USD 500 |
| MEDIUM counterparty concentration | >40% of output OR input |
| MEDIUM conservative-default count | >4 across the return |
| LOW absolute net IVA position | USD 10,000 |

## Section 2 — Required inputs and refusal catalogue

### Required inputs

**Minimum viable** — bank statement for the month in CSV, PDF, or pasted text. Acceptable from: Banco Pichincha, Banco del Pacifico, Produbanco, Banco Guayaquil, Banco Bolivariano, Cooperativa JEP, or any other.

**Recommended** — electronic invoices (facturas electronicas) for the period, comprobantes de retencion, RUC number.

**Ideal** — complete ATS (Anexo Transaccional Simplificado), prior Formulario 104, credit balance reconciliation.

### Ecuador-specific refusal catalogue

- **R-EC-1 — RIMPE Negocio Popular** — Trigger: client is RIMPE Negocio Popular (income under USD 20,000). Message: "RIMPE Negocios Populares pay a fixed annual quota and do not charge IVA separately. No Formulario 104 is filed."
- **R-EC-2 — Oil sector service contracts** — Trigger: client has service contracts with EPPETROECUADOR. Message: "Oil sector service contracts have specialized IVA treatment. Escalate to specialist."
- **R-EC-3 — ZEDE / special economic zone** — Trigger: client operates in a ZEDE. Message: "ZEDE entities have special IVA rules. Flag for reviewer."
- **R-EC-4 — Partial exemption (Factor de Proporcionalidad)** — Trigger: client makes both tarifa 15% and tarifa 0% (no credit) sales. Message: "Mixed operations require the Factor de Proporcionalidad. Flag for reviewer to confirm calculation."

## Section 3 — Supplier pattern library

### 3.1 Ecuadorian banks (fees taxable, interest exempt)

**Ecuadorian banks pattern table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| BANCO PICHINCHA, BP | 15% for fees; EXCLUDE for interest | Banking fees taxable; interest tarifa 0% |
| BANCO DEL PACIFICO, PRODUBANCO | Same | Same |
| BANCO GUAYAQUIL, BOLIVARIANO | Same | Same |
| COOPERATIVA JEP | Same | Same |
| INTERESES, INTERES | EXCLUDE | Interest, tarifa 0% |

### 3.2 Government and regulators (exclude)

**Government and regulators pattern table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| SRI, SERVICIO DE RENTAS INTERNAS | EXCLUDE | Tax payment |
| IESS, INSTITUTO ECUATORIANO DE SEGURIDAD SOCIAL | EXCLUDE | Social security |
| SENAE, ADUANA | EXCLUDE for duty; check import IVA |  |
| MUNICIPIO, GAD | EXCLUDE | Government fee |

### 3.3 Utilities

**Utilities pattern table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| EMPRESA ELECTRICA, EEQ, CNEL | Domestic 15% | Commercial electricity |
| CNT, CORPORACION NACIONAL TELECOMUNICACIONES | Domestic 15% | Telecoms |
| CLARO, MOVISTAR, TUENTI | Domestic 15% | Mobile |
| EMPRESA DE AGUA, EMAAP | Tarifa 0% (domestic, up to threshold) | Water |

### 3.4 Insurance

**Insurance pattern table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| SEGUROS (general) | Domestic 15% | General insurance taxable |
| SEGURO DE VIDA, SEGURO MEDICO | Tarifa 0% | Life/health insurance exempt |

### 3.5 SaaS — non-resident (reverse charge)

**SaaS non-resident pattern table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| GOOGLE, MICROSOFT, ADOBE, META | Reverse charge 15% | Self-assess output and input IVA |
| ZOOM, SLACK, NOTION, ANTHROPIC, OPENAI | Reverse charge 15% | Same |
| AWS, AMAZON WEB SERVICES | Reverse charge 15% | Same |

### 3.6 Food and entertainment

**Food and entertainment pattern table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| SUPERMAXI, MEGAMAXI, TIA, MI COMISARIATO | Default BLOCK input IVA | Personal provisioning |
| RESTAURANT, RESTAURANTE | Default BLOCK | Entertainment blocked |

### 3.7 Professional services

**Professional services pattern table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| ABOGADO, ESTUDIO JURIDICO | Domestic 15% | Withhold 70% or 100% of IVA |
| CONTADOR, CPA | Domestic 15% | Same |
| NOTARIA | Domestic 15% | Same |

### 3.8 Payroll and social security (exclude)

**Payroll and social security pattern table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| IESS, FONDOS DE RESERVA | EXCLUDE | Social security |
| NOMINA, SUELDO, SALARIO | EXCLUDE | Wages |
| IMPUESTO A LA RENTA, IR | EXCLUDE | Income tax |

### 3.9 Internal transfers

**Internal transfers pattern table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| TRANSFERENCIA PROPIA, TRASPASO | EXCLUDE | Internal movement |
| DIVIDENDO | EXCLUDE | Out of scope |
| RETIRO ATM, CAJERO | Ask | Default exclude |

## Section 4 — Worked examples

### Example 1 — Non-resident SaaS reverse charge

**Example 1 output table**  _(—)_

| Date | Counterparty | Gross | Net | IVA | Rate | Line (input) | Line (output) | Default? | Question? | Excluded? |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 05.04.2026 | NOTION LABS INC | -16.00 | -16.00 | 2.40 | 15% | 510 | 411 | N | — | — |

**Input line:**
`05.04.2026 ; NOTION LABS INC ; DEBIT ; Subscription ; USD 16.00`

**Reasoning:** US entity. Self-assess IVA at 15%. Output = USD 2.40. Input = USD 2.40. Net zero.

### Example 2 — Standard domestic sale

**Example 2 output table**  _(—)_

| Date | Counterparty | Gross | Net | IVA | Rate | Line | Default? | Question? | Excluded? |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 10.04.2026 | CIA TECHSOLUTION SA | +5,750 | +5,000 | 750 | 15% | 401/411 | N | — | — |

**Input line:**
`10.04.2026 ; CIA TECHSOLUTION SA ; CREDIT ; Invoice 2026-041 consulting ; +5,750`

**Reasoning:** Domestic taxable sale at 15%. Net = 5,750 / 1.15 = 5,000. IVA = 750.

### Example 3 — Entertainment, blocked

**Example 3 output table**  _("Entertainment: blocked")_

| Date | Counterparty | Gross | Net | IVA | Rate | Line | Default? | Question? | Excluded? |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 15.04.2026 | RESTAURANTE EL MESON | -115 | -115 | 0 | — | — | Y | Q1 | "Entertainment: blocked" |

**Input line:**
`15.04.2026 ; RESTAURANTE EL MESON ; DEBIT ; Business dinner ; -115`

**Reasoning:** Entertainment blocked. No input IVA recovery.

### Example 4 — Export of goods (bananas)

**Example 4 output table**  _(—)_

| Date | Counterparty | Gross | Net | IVA | Rate | Line | Default? | Question? | Excluded? |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 18.04.2026 | FRUIT IMPORT GMBH | +100,000 | +100,000 | 0 | 0% | 405 | N | — | — |

**Input line:**
`18.04.2026 ; FRUIT IMPORT GMBH ; CREDIT ; Invoice EC-2026-088 bananas ; +100,000`

**Reasoning:** Export of goods. Tarifa 0% with full input credit recovery. Line 405.

### Example 5 — Motor vehicle, blocked

**Example 5 output table**  _("Motor vehicle: blocked")_

| Date | Counterparty | Gross | Net | IVA | Rate | Line | Default? | Question? | Excluded? |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 22.04.2026 | AUTOMOTORES SA | -25,000 | -25,000 | 0 | — | — | Y | Q2 | "Motor vehicle: blocked" |

**Input line:**
`22.04.2026 ; AUTOMOTORES SA ; DEBIT ; Sedan purchase ; -25,000`

**Reasoning:** Passenger vehicle. Input IVA blocked.

### Example 6 — Professional services with IVA withholding

**Example 6 output table**  _("Withhold 100% IVA")_

| Date | Counterparty | Gross | Net | IVA | Rate | Line | Default? | Question? | Excluded? |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 28.04.2026 | ING. PEDRO GARCIA | -2,300 | -2,000 | -300 | 15% | 500/510 | N | Q3 | "Withhold 100% IVA" |

**Input line:**
`28.04.2026 ; ING. PEDRO GARCIA ; DEBIT ; Consulting fee ; -2,300`

**Reasoning:** Professional service from individual. IVA = 2,300 / 1.15 * 0.15 = 300. Must withhold 100% of IVA = 300. Issue comprobante de retencion within 5 days.

## Section 5 — Tier 1 classification rules (compressed)

### 5.1 Standard rate 15% (LRTI Art. 65)

- **Standard rate default** — Default rate for all taxable transfers. Sales at Line 401/411. Purchases at Line 500/510.  _(LRTI Art. 65)_

### 5.2 Tarifa 0% goods (LRTI Art. 55)

- **Tarifa 0% goods** — Unprocessed agricultural products, medicines, agricultural inputs, books, infant formula, feminine hygiene, seeds.  _(LRTI Art. 55)_

### 5.3 Tarifa 0% services (LRTI Art. 56)

- **Tarifa 0% services** — Medical, education, public transport, residential rental, financial interest, insurance (life/health), electricity/water (domestic thresholds), funerals.  _(LRTI Art. 56)_

### 5.4 Exports (LRTI Art. 55-56)

- **Exports zero-rated with full credit** — Zero-rated with full input credit. Goods at Line 405. Services at Line 406.  _(LRTI Art. 55-56)_

### 5.5 Reverse charge — imported services

- **Reverse charge imported services** — Self-assess at 15%. Report output and input. Net zero for fully taxable.

### 5.6 IVA withholding (LRTI Art. 63)

- **IVA withholding rates** — Goods from general taxpayer: 30%. Services from general: 70%. Professional individuals: 100%. Government: 100%. Exporters: 100%.  _(LRTI Art. 63)_

### 5.7 Blocked input IVA (LRTI Art. 66)

- **Blocked input IVA categories** — Personal use, entertainment, motor vehicles (except rental/taxi/transport), purchases without valid electronic comprobante.  _(LRTI Art. 66)_

### 5.8 Factor de Proporcionalidad

- **Factor de Proporcionalidad formula** — Mixed operations: Factor = (Taxable + Exports) / Total Sales. Apply to common input IVA.

### 5.9 Electronic invoicing

- **Electronic invoicing requirement** — Mandatory for all taxpayers. Input IVA only deductible with SRI-authorized electronic documents.

### 5.10 ICE interaction (LRTI Art. 75-89)

- **ICE interaction** — ICE is separate. IVA is calculated on price inclusive of ICE.  _(LRTI Art. 75-89)_

## Section 6 — Tier 2 catalogue (compressed)

### 6.1 Rate change transition

- **Rate change transition default/question** — Default: 15% for all current periods. 12% only for pre-April 2024. Question: "Confirm transaction date for rate determination."

### 6.2 Exporter IVA recovery

- **Exporter IVA recovery default/question** — Default: full recovery for exporters. Question: "Are all costs attributable to exports?"

### 6.3 CAN country services

- **CAN country services default/question** — Default: reverse charge. Question: "Confirm CAN Decision 599 implications."

### 6.4 Artisan sector

- **Artisan sector default/question** — Default: flag for reviewer. Question: "Is JNDA registration current?"

### 6.5 Tourism packages

- **Tourism packages default/question** — Default: flag. Question: "Incoming foreign tourist package — confirm tarifa 0% eligibility."

### 6.6 Mixed operations proportionality

- **Mixed operations proportionality default/question** — Default: flag for reviewer. Question: "Confirm factor calculation."

## Section 7 — Excel working paper template

### Sheet "Transactions"

Columns A-L. Column H accepts Formulario 104 line numbers.

### Sheet "Return Summary"

- **Return Summary formulas** — Line 601 = Output IVA Line 602 = Input credit (after factor) Line 699 = 601 - 602 Line 902 = 699 - 721 (withholdings)

## Section 8 — Ecuador bank statement reading guide

**Format:** Banco Pichincha exports CSV with DD/MM/YYYY. USD currency.

**Language:** Spanish. "Transferencia", "deposito", "retiro".

**Internal transfers:** "Traspaso entre cuentas". Always exclude.

**RUC-based deadline:** Filing date depends on 9th digit of RUC (10th-28th).

## Section 9 — Onboarding fallback

### 9.1 Entity type

- **Entity type inference/fallback** — Inference: SA, CIA LTDA = company. Fallback: "Entity type?"

### 9.2 Tax regime

- **Tax regime inference/fallback** — Inference: if filing F104, Regimen General. Fallback: "Regimen General or RIMPE?"

### 9.3 RUC

- **RUC fallback** — Fallback: "What is your 13-digit RUC?"

### 9.4 Period

- **Period inference/fallback** — Inference: from statement dates. Fallback: "Which month?"

### 9.5 Industry

- **Industry inference/fallback** — Inference: counterparty mix. Fallback: "What does the business do?"

### 9.6 Credit balance

- **Credit balance always ask** — Always ask: "Credit balance from prior period?"

## Section 10 — Reference material

### Sources

1. Ley de Regimen Tributario Interno (LRTI) — Articles 53-73
2. Reglamento LRTI — Article 193
3. Codigo Tributario
4. Executive Decree 198 (March 2024, rate increase)
5. SRI en Linea — https://www.sri.gob.ec

### Known gaps

1. ZEDE-specific IVA rules need specialist verification.
2. Artisan sector JNDA registration status must be current.
3. Digital services taxation from non-residents is evolving.

### Change log

- **v2.0 (April 2026):** Full rewrite to 10-section architecture.
- **v1.0:** Initial skill.

## Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.

The most up-to-date, verified version of this skill is maintained at [openaccountants.com](https://openaccountants.com). Log in to access the latest version, request a professional review from a licensed accountant, and track updates as tax law changes.