Summary
Summary
Ecuador imposes a 15% VAT on various digital services related to sports betting, online video games, sports forecasts, and streaming of sports events.
Ecuador’s Revenue Authority issued on March 31, 2026, a circular that additionally shed light on the responsibilities of different groups of digital service providers that provide their services to customers located in Ecuador.
The Circular was primarily issued to clarify the VAT framework for foreign and domestic digital service providers that provide digital services such as online sports betting, streaming services(access to sports events), and online gaming.
Ecuador adopted Regulations to the Internal Tax Code a few years back, to expand the applicability of the VAT regime to digital services, provided by both domestic and non-resident providers. The country has in place a multi-layered indirect tax regime for providers of digital services.
Ecuador – Digital Services in Scope
VAT on Digital Services in Ecuador is 15%. The Implementing Regulations of the Internal Tax Code indicate the following types of digital services connected to sports betting to be in scope:
Distribution of the betting services or any digital content, including the one provided through streaming services, precisely the ones like:
- Online video games are provided on a payment, subscription, or download basis
- Sports forecasts made possible by domestic or foreign digital platforms
- Streaming of sports events as part of a contracted digital service
VAT for Digital Services
Internal Tax Code, precisely the VAT part, indicates that a non-resident digital service provider should register for VAT when providing digital services to local customers, and if registered, they should align with the procedures established under Resolution No. NAC-DGERCGC20-00000055 of 4 September 2020 for the declaration and payment of VAT.
The VAT framework indicates three different categories of persons that could be accountable for VAT on digital services, depending on the nature and tax residence of the provider. When the specific conditions are met, one of the following three types of persons becomes responsible for VAT on digital services in Ecuador:
- Provider
- Intermediary financial institution, or
- Recipient of the service
Accountability for VAT on Digital Services
Depending on the residence of the service provider, its registration status, the following three scenarios for VAT accountability could be differentiated:
- In the case when the foreign service provider isn’t VAT registered in Ecuador, and the payment is made through a financial intermediary, the intermediary acts as a tax collection agent, withholds VAT at the moment of payment, and is responsible for the proper submission of the declaration and VAT remittance
- In the situation where the provider is a domestic person or a foreign VAT-registered person in Ecuador, the accountability for VAT is responsible for VAT collection and remittance
- When the non-resident digital service provider is involved, and there is a lack of a financial intermediary in the transaction, the VAT collection and remittance responsibility is transferred to the local customer. The customer must self-assess the tax, submit the declaration, and calculate the tax to the tax authority.
How To Stay Compliant
The Ecuador VAT regime for domestic and non-resident providers of digital services could be quite complicated.
We have successfully assisted many non-resident providers of digital services who offer their services to customers residing or established in Ecuador. The advisory role offered by 1stopVAT for these providers extends from understanding the threshold exposure for registration, accountability for VAT, assistance with the return preparation, and remittance of the owed tax.
Where we cannot manage your VAT requirements directly, we have a great network of local tax agents who will take care of this.
In addition to successfully managing your registration, we offer additional services for digital service providers in Ecuador, such as:
- Assistance with Tax Reporting(preparation of returns, filing, and remittance)
- Tax Advisory and Ongoing Tax Management
- Correspondence with Tax Authorities
Takeaway
Non-resident providers of digital services to customers residing in Ecuador should register for VAT following the specific requirements and rules defined for them. Inland Revenue Service issued a Circular, in the “form” of a reminder, to all accountable digital services providers to register for VAT, and comply with all requirements when providing any of the taxable digital services.
Author: Aleksandar Delic
Revenue Authority used the Circular to send a “signal” to responsible providers, to get in line with the VAT regime developed for digital services, putting a special emphasis on the digital platforms that participate in sports betting, streaming of sports events, or any digital service that contracts access to them.
Indirect Tax Manager – E-commerce
Frequently Asked Questions
The VAT rate on digital services in Ecuador is 15%. This applies to both domestic and non-resident providers supplying taxable digital services to customers located in Ecuador.
VAT applies to a broad range of digital services, including:
Online sports betting and forecasting platforms
Streaming services (including live sports events)
Online gaming (subscription, download, or pay-to-play models)
Digital content distribution through platforms
Any service delivered electronically with user access or participation is generally within scope.
Yes. Non-resident digital service providers should register for VAT when supplying taxable services to Ecuadorian customers. Once registered, they should:
Charge 15% VAT
File VAT returns
Remit collected tax to the Ecuadorian tax authority
VAT responsibility depends on the transaction structure. One of the following parties may be liable:
The digital service provider
A financial intermediary (e.g., payment processor or bank)
The customer (under reverse charge/self-assessment)
The customer should self-assess VAT when:
The provider is non-resident, and
No financial intermediary is involved in the transaction
The customer must:
Calculate VAT
File a declaration
Pay the tax directly to the tax authority
The provider is responsible for VAT when:
It is established in Ecuador, or
It is a non-resident provider registered for VAT locally
In these cases, the provider must charge VAT on invoices and handle full compliance.