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openaccountants/skills/ecuador-iva.md
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1---
2name: ecuador-iva
3description: 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.
4version: 2.0
5---
6 
7# Ecuador IVA Return Skill (Formulario 104) v2.0
8 
9## Section 1 — Quick reference
10 
11| Field | Value |
12|---|---|
13| Country | Ecuador |
14| Standard rate | 15% (from 1 April 2024; confirmed through 2026) |
15| Previous rate | 12% (periods before 1 April 2024) |
16| 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 |
17| Return form | Formulario 104 |
18| Filing portal | https://www.sri.gob.ec (SRI en Linea) |
19| Authority | Servicio de Rentas Internas (SRI) |
20| Currency | USD (Ecuador uses US dollar) |
21| Filing frequency | Monthly (standard); semi-annual (RIMPE emprendedores) |
22| Deadline | Depends on 9th digit of RUC (10th-28th of following month) |
23| Contributor | Open Accountants Skills Registry |
24| Validated by | Pending — requires validation by a licensed CPA in Ecuador |
25| Validation date | Pending |
26 
27**Key Formulario 104 lines:**
28 
29| Line | Meaning |
30|---|---|
31| 401 | Taxable sales (excl. fixed assets) — tarifa diferente de 0% |
32| 402 | Sales of fixed assets — taxable |
33| 403 | Tarifa 0% sales (no credit right) |
34| 404 | Tarifa 0% sales (with credit right) |
35| 405 | Exports of goods |
36| 406 | Exports of services |
37| 409 | Total sales |
38| 411 | Output IVA (IVA generado en ventas) |
39| 500 | Taxable purchases (excl. fixed assets) |
40| 501 | Fixed asset purchases — taxable |
41| 502 | Non-taxable purchases |
42| 503 | Taxable imports |
43| 504 | Fixed asset imports — taxable |
44| 510 | Input IVA on purchases |
45| 511 | Input IVA on imports |
46| 601 | IVA causado (output) |
47| 602 | Credito tributario aplicable (input credit) |
48| 605 | Factor de proporcionalidad |
49| 699 | Tax payable / credit balance |
50| 721 | IVA withholdings received |
51| 902 | Total payable |
52 
53**Conservative defaults:**
54 
55| Ambiguity | Default |
56|---|---|
57| Unknown rate on a sale | 15% |
58| Unknown IVA status of a purchase | Not deductible |
59| Unknown counterparty country | Domestic Ecuador |
60| Unknown business-use proportion | 0% recovery |
61| Unknown blocked-input status | Blocked |
62| Unknown SaaS billing entity | Reverse charge at 15% |
63 
64**Red flag thresholds:**
65 
66| Threshold | Value |
67|---|---|
68| HIGH single-transaction size | USD 5,000 |
69| HIGH tax-delta on a single conservative default | USD 500 |
70| MEDIUM counterparty concentration | >40% of output OR input |
71| MEDIUM conservative-default count | >4 across the return |
72| LOW absolute net IVA position | USD 10,000 |
73 
74---
75 
76## Section 2 — Required inputs and refusal catalogue
77 
78### Required inputs
79 
80**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.
81 
82**Recommended** — electronic invoices (facturas electronicas) for the period, comprobantes de retencion, RUC number.
83 
84**Ideal** — complete ATS (Anexo Transaccional Simplificado), prior Formulario 104, credit balance reconciliation.
85 
86### Ecuador-specific refusal catalogue
87 
88**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."
89 
90**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."
91 
92**R-EC-3 — ZEDE / special economic zone.** *Trigger:* client operates in a ZEDE. *Message:* "ZEDE entities have special IVA rules. Flag for reviewer."
93 
94**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."
95 
96---
97 
98## Section 3 — Supplier pattern library
99 
100### 3.1 Ecuadorian banks (fees taxable, interest exempt)
101 
102| Pattern | Treatment | Notes |
103|---|---|---|
104| BANCO PICHINCHA, BP | 15% for fees; EXCLUDE for interest | Banking fees taxable; interest tarifa 0% |
105| BANCO DEL PACIFICO, PRODUBANCO | Same | Same |
106| BANCO GUAYAQUIL, BOLIVARIANO | Same | Same |
107| COOPERATIVA JEP | Same | Same |
108| INTERESES, INTERES | EXCLUDE | Interest, tarifa 0% |
109 
110### 3.2 Government and regulators (exclude)
111 
112| Pattern | Treatment | Notes |
113|---|---|---|
114| SRI, SERVICIO DE RENTAS INTERNAS | EXCLUDE | Tax payment |
115| IESS, INSTITUTO ECUATORIANO DE SEGURIDAD SOCIAL | EXCLUDE | Social security |
116| SENAE, ADUANA | EXCLUDE for duty; check import IVA |
117| MUNICIPIO, GAD | EXCLUDE | Government fee |
118 
119### 3.3 Utilities
120 
121| Pattern | Treatment | Notes |
122|---|---|---|
123| EMPRESA ELECTRICA, EEQ, CNEL | Domestic 15% | Commercial electricity |
124| CNT, CORPORACION NACIONAL TELECOMUNICACIONES | Domestic 15% | Telecoms |
125| CLARO, MOVISTAR, TUENTI | Domestic 15% | Mobile |
126| EMPRESA DE AGUA, EMAAP | Tarifa 0% (domestic, up to threshold) | Water |
127 
128### 3.4 Insurance
129 
130| Pattern | Treatment | Notes |
131|---|---|---|
132| SEGUROS (general) | Domestic 15% | General insurance taxable |
133| SEGURO DE VIDA, SEGURO MEDICO | Tarifa 0% | Life/health insurance exempt |
134 
135### 3.5 SaaS — non-resident (reverse charge)
136 
137| Pattern | Treatment | Notes |
138|---|---|---|
139| GOOGLE, MICROSOFT, ADOBE, META | Reverse charge 15% | Self-assess output and input IVA |
140| ZOOM, SLACK, NOTION, ANTHROPIC, OPENAI | Reverse charge 15% | Same |
141| AWS, AMAZON WEB SERVICES | Reverse charge 15% | Same |
142 
143### 3.6 Food and entertainment
144 
145| Pattern | Treatment | Notes |
146|---|---|---|
147| SUPERMAXI, MEGAMAXI, TIA, MI COMISARIATO | Default BLOCK input IVA | Personal provisioning |
148| RESTAURANT, RESTAURANTE | Default BLOCK | Entertainment blocked |
149 
150### 3.7 Professional services
151 
152| Pattern | Treatment | Notes |
153|---|---|---|
154| ABOGADO, ESTUDIO JURIDICO | Domestic 15% | Withhold 70% or 100% of IVA |
155| CONTADOR, CPA | Domestic 15% | Same |
156| NOTARIA | Domestic 15% | Same |
157 
158### 3.8 Payroll and social security (exclude)
159 
160| Pattern | Treatment | Notes |
161|---|---|---|
162| IESS, FONDOS DE RESERVA | EXCLUDE | Social security |
163| NOMINA, SUELDO, SALARIO | EXCLUDE | Wages |
164| IMPUESTO A LA RENTA, IR | EXCLUDE | Income tax |
165 
166### 3.9 Internal transfers
167 
168| Pattern | Treatment | Notes |
169|---|---|---|
170| TRANSFERENCIA PROPIA, TRASPASO | EXCLUDE | Internal movement |
171| DIVIDENDO | EXCLUDE | Out of scope |
172| RETIRO ATM, CAJERO | Ask | Default exclude |
173 
174---
175 
176## Section 4 — Worked examples
177 
178### Example 1 — Non-resident SaaS reverse charge
179 
180**Input line:**
181`05.04.2026 ; NOTION LABS INC ; DEBIT ; Subscription ; USD 16.00`
182 
183**Reasoning:** US entity. Self-assess IVA at 15%. Output = USD 2.40. Input = USD 2.40. Net zero.
184 
185**Output:**
186 
187| Date | Counterparty | Gross | Net | IVA | Rate | Line (input) | Line (output) | Default? | Question? | Excluded? |
188|---|---|---|---|---|---|---|---|---|---|---|
189| 05.04.2026 | NOTION LABS INC | -16.00 | -16.00 | 2.40 | 15% | 510 | 411 | N | — | — |
190 
191### Example 2 — Standard domestic sale
192 
193**Input line:**
194`10.04.2026 ; CIA TECHSOLUTION SA ; CREDIT ; Invoice 2026-041 consulting ; +5,750`
195 
196**Reasoning:** Domestic taxable sale at 15%. Net = 5,750 / 1.15 = 5,000. IVA = 750.
197 
198**Output:**
199 
200| Date | Counterparty | Gross | Net | IVA | Rate | Line | Default? | Question? | Excluded? |
201|---|---|---|---|---|---|---|---|---|---|
202| 10.04.2026 | CIA TECHSOLUTION SA | +5,750 | +5,000 | 750 | 15% | 401/411 | N | — | — |
203 
204### Example 3 — Entertainment, blocked
205 
206**Input line:**
207`15.04.2026 ; RESTAURANTE EL MESON ; DEBIT ; Business dinner ; -115`
208 
209**Reasoning:** Entertainment blocked. No input IVA recovery.
210 
211**Output:**
212 
213| Date | Counterparty | Gross | Net | IVA | Rate | Line | Default? | Question? | Excluded? |
214|---|---|---|---|---|---|---|---|---|---|
215| 15.04.2026 | RESTAURANTE EL MESON | -115 | -115 | 0 | — | — | Y | Q1 | "Entertainment: blocked" |
216 
217### Example 4 — Export of goods (bananas)
218 
219**Input line:**
220`18.04.2026 ; FRUIT IMPORT GMBH ; CREDIT ; Invoice EC-2026-088 bananas ; +100,000`
221 
222**Reasoning:** Export of goods. Tarifa 0% with full input credit recovery. Line 405.
223 
224**Output:**
225 
226| Date | Counterparty | Gross | Net | IVA | Rate | Line | Default? | Question? | Excluded? |
227|---|---|---|---|---|---|---|---|---|---|
228| 18.04.2026 | FRUIT IMPORT GMBH | +100,000 | +100,000 | 0 | 0% | 405 | N | — | — |
229 
230### Example 5 — Motor vehicle, blocked
231 
232**Input line:**
233`22.04.2026 ; AUTOMOTORES SA ; DEBIT ; Sedan purchase ; -25,000`
234 
235**Reasoning:** Passenger vehicle. Input IVA blocked.
236 
237**Output:**
238 
239| Date | Counterparty | Gross | Net | IVA | Rate | Line | Default? | Question? | Excluded? |
240|---|---|---|---|---|---|---|---|---|---|
241| 22.04.2026 | AUTOMOTORES SA | -25,000 | -25,000 | 0 | — | — | Y | Q2 | "Motor vehicle: blocked" |
242 
243### Example 6 — Professional services with IVA withholding
244 
245**Input line:**
246`28.04.2026 ; ING. PEDRO GARCIA ; DEBIT ; Consulting fee ; -2,300`
247 
248**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.
249 
250**Output:**
251 
252| Date | Counterparty | Gross | Net | IVA | Rate | Line | Default? | Question? | Excluded? |
253|---|---|---|---|---|---|---|---|---|---|
254| 28.04.2026 | ING. PEDRO GARCIA | -2,300 | -2,000 | -300 | 15% | 500/510 | N | Q3 | "Withhold 100% IVA" |
255 
256---
257 
258## Section 5 — Tier 1 classification rules (compressed)
259 
260### 5.1 Standard rate 15% (LRTI Art. 65)
261Default rate for all taxable transfers. Sales at Line 401/411. Purchases at Line 500/510.
262 
263### 5.2 Tarifa 0% goods (LRTI Art. 55)
264Unprocessed agricultural products, medicines, agricultural inputs, books, infant formula, feminine hygiene, seeds.
265 
266### 5.3 Tarifa 0% services (LRTI Art. 56)
267Medical, education, public transport, residential rental, financial interest, insurance (life/health), electricity/water (domestic thresholds), funerals.
268 
269### 5.4 Exports (LRTI Art. 55-56)
270Zero-rated with full input credit. Goods at Line 405. Services at Line 406.
271 
272### 5.5 Reverse charge — imported services
273Self-assess at 15%. Report output and input. Net zero for fully taxable.
274 
275### 5.6 IVA withholding (LRTI Art. 63)
276Goods from general taxpayer: 30%. Services from general: 70%. Professional individuals: 100%. Government: 100%. Exporters: 100%.
277 
278### 5.7 Blocked input IVA (LRTI Art. 66)
279Personal use, entertainment, motor vehicles (except rental/taxi/transport), purchases without valid electronic comprobante.
280 
281### 5.8 Factor de Proporcionalidad
282Mixed operations: Factor = (Taxable + Exports) / Total Sales. Apply to common input IVA.
283 
284### 5.9 Electronic invoicing
285Mandatory for all taxpayers. Input IVA only deductible with SRI-authorized electronic documents.
286 
287### 5.10 ICE interaction (LRTI Art. 75-89)
288ICE is separate. IVA is calculated on price inclusive of ICE.
289 
290---
291 
292## Section 6 — Tier 2 catalogue (compressed)
293 
294### 6.1 Rate change transition
295*Default:* 15% for all current periods. 12% only for pre-April 2024. *Question:* "Confirm transaction date for rate determination."
296 
297### 6.2 Exporter IVA recovery
298*Default:* full recovery for exporters. *Question:* "Are all costs attributable to exports?"
299 
300### 6.3 CAN country services
301*Default:* reverse charge. *Question:* "Confirm CAN Decision 599 implications."
302 
303### 6.4 Artisan sector
304*Default:* flag for reviewer. *Question:* "Is JNDA registration current?"
305 
306### 6.5 Tourism packages
307*Default:* flag. *Question:* "Incoming foreign tourist package — confirm tarifa 0% eligibility."
308 
309### 6.6 Mixed operations proportionality
310*Default:* flag for reviewer. *Question:* "Confirm factor calculation."
311 
312---
313 
314## Section 7 — Excel working paper template
315 
316### Sheet "Transactions"
317Columns A-L. Column H accepts Formulario 104 line numbers.
318 
319### Sheet "Return Summary"
320```
321Line 601 = Output IVA
322Line 602 = Input credit (after factor)
323Line 699 = 601 - 602
324Line 902 = 699 - 721 (withholdings)
325```
326 
327---
328 
329## Section 8 — Ecuador bank statement reading guide
330 
331**Format:** Banco Pichincha exports CSV with DD/MM/YYYY. USD currency.
332 
333**Language:** Spanish. "Transferencia", "deposito", "retiro".
334 
335**Internal transfers:** "Traspaso entre cuentas". Always exclude.
336 
337**RUC-based deadline:** Filing date depends on 9th digit of RUC (10th-28th).
338 
339---
340 
341## Section 9 — Onboarding fallback
342 
343### 9.1 Entity type
344*Inference:* SA, CIA LTDA = company. *Fallback:* "Entity type?"
345 
346### 9.2 Tax regime
347*Inference:* if filing F104, Regimen General. *Fallback:* "Regimen General or RIMPE?"
348 
349### 9.3 RUC
350*Fallback:* "What is your 13-digit RUC?"
351 
352### 9.4 Period
353*Inference:* from statement dates. *Fallback:* "Which month?"
354 
355### 9.5 Industry
356*Inference:* counterparty mix. *Fallback:* "What does the business do?"
357 
358### 9.6 Credit balance
359Always ask: "Credit balance from prior period?"
360 
361---
362 
363## Section 10 — Reference material
364 
365### Sources
3661. Ley de Regimen Tributario Interno (LRTI) — Articles 53-73
3672. Reglamento LRTI — Article 193
3683. Codigo Tributario
3694. Executive Decree 198 (March 2024, rate increase)
3705. SRI en Linea — https://www.sri.gob.ec
371 
372### Known gaps
3731. ZEDE-specific IVA rules need specialist verification.
3742. Artisan sector JNDA registration status must be current.
3753. Digital services taxation from non-residents is evolving.
376 
377### Change log
378- **v2.0 (April 2026):** Full rewrite to 10-section architecture.
379- **v1.0:** Initial skill.
380 
381---
382 
383## Disclaimer
384 
385This 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.
386 
387The 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.
388 

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About

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.

ECty-2025

EC skill: