Ecuador IVA Return Skill (Formulario 104) v2.0

Section 1 — Quick reference

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

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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."

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Section 3 — Supplier pattern library

3.1 Ecuadorian banks (fees taxable, interest exempt)

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)

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

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

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)

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

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

3.7 Professional services

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)

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

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

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Section 4 — Worked examples

Example 1 — Non-resident SaaS reverse charge

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.

Output:

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	—	—

Example 2 — Standard domestic sale

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.

Output:

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	—	—

Example 3 — Entertainment, blocked

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

Reasoning: Entertainment blocked. No input IVA recovery.

Output:

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

Example 4 — Export of goods (bananas)

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.

Output:

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

Example 5 — Motor vehicle, blocked

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

Reasoning: Passenger vehicle. Input IVA blocked.

Output:

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"

Example 6 — Professional services with IVA withholding

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.

Output:

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"

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Section 5 — Tier 1 classification rules (compressed)

5.1 Standard rate 15% (LRTI Art. 65)

Default rate for all taxable transfers. Sales at Line 401/411. Purchases at Line 500/510.

5.2 Tarifa 0% goods (LRTI Art. 55)

Unprocessed agricultural products, medicines, agricultural inputs, books, infant formula, feminine hygiene, seeds.

5.3 Tarifa 0% services (LRTI Art. 56)

Medical, education, public transport, residential rental, financial interest, insurance (life/health), electricity/water (domestic thresholds), funerals.

5.4 Exports (LRTI Art. 55-56)

Zero-rated with full input credit. Goods at Line 405. Services at Line 406.

5.5 Reverse charge — imported services

Self-assess at 15%. Report output and input. Net zero for fully taxable.

5.6 IVA withholding (LRTI Art. 63)

Goods from general taxpayer: 30%. Services from general: 70%. Professional individuals: 100%. Government: 100%. Exporters: 100%.

5.7 Blocked input IVA (LRTI Art. 66)

Personal use, entertainment, motor vehicles (except rental/taxi/transport), purchases without valid electronic comprobante.

5.8 Factor de Proporcionalidad

Mixed operations: Factor = (Taxable + Exports) / Total Sales. Apply to common input IVA.

5.9 Electronic invoicing

Mandatory for all taxpayers. Input IVA only deductible with SRI-authorized electronic documents.

5.10 ICE interaction (LRTI Art. 75-89)

ICE is separate. IVA is calculated on price inclusive of ICE.

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Section 6 — Tier 2 catalogue (compressed)

6.1 Rate change transition

Default: 15% for all current periods. 12% only for pre-April 2024. Question: "Confirm transaction date for rate determination."

6.2 Exporter IVA recovery

Default: full recovery for exporters. Question: "Are all costs attributable to exports?"

6.3 CAN country services

Default: reverse charge. Question: "Confirm CAN Decision 599 implications."

6.4 Artisan sector

Default: flag for reviewer. Question: "Is JNDA registration current?"

6.5 Tourism packages

Default: flag. Question: "Incoming foreign tourist package — confirm tarifa 0% eligibility."

6.6 Mixed operations proportionality

Default: flag for reviewer. Question: "Confirm factor calculation."

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Section 7 — Excel working paper template

Sheet "Transactions"

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

Sheet "Return Summary"

Line 601 = Output IVA
Line 602 = Input credit (after factor)
Line 699 = 601 - 602
Line 902 = 699 - 721 (withholdings)

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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).

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Section 9 — Onboarding fallback

9.1 Entity type

Inference: SA, CIA LTDA = company. Fallback: "Entity type?"

9.2 Tax regime

Inference: if filing F104, Regimen General. Fallback: "Regimen General or RIMPE?"

9.3 RUC

Fallback: "What is your 13-digit RUC?"

9.4 Period

Inference: from statement dates. Fallback: "Which month?"

9.5 Industry

Inference: counterparty mix. Fallback: "What does the business do?"

9.6 Credit balance

Always ask: "Credit balance from prior period?"

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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.

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Disclaimer

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