Ecuador Temporarily Cuts VAT to 8% for Tourism Services Over November Holiday
On October 29, 2026, President Daniel Noboa signed Executive Decree 526, temporarily reducing the Value Added Tax (IVA) rate on tourism services from 15% to 8% for the upcoming national holiday. The tax reduction targets four consecutive days: Saturday, October 31; Sunday, November 1; Monday, November 2; and Tuesday, November 3, 2026. This period encompasses the national observances for the Day of the Dead (Día de Difuntos) and the Independence of Cuenca.
Under Executive Decree 526, the Internal Revenue Service (SRI) is instructed to execute the administrative and technical measures necessary to implement the rate change in accordance with existing tax regulations. The temporary reduction specifically applies to services defined as tourism activities under governing law and does not alter standard tax rates for other goods or non-tourism commercial services.
What to watch
- SRI Implementation Actions: Administrative guidelines and updates issued by the Internal Revenue Service (SRI) to enforce the temporary tax reduction.
- Billing Compliance: Execution by qualifying tourism service providers in issuing sales receipts reflecting the 8% IVA rate during the specified four-day holiday period.
Sources: primicias.ec; vistazo.com.
Image: AI-generated editorial illustration; not a documentary depiction of the events reported.
Report an article problem
Tell us what seems incorrect or outdated. Email is optional.
For business readers
Need a focused answer to an Ecuador business question?
Request a separately scoped 30-minute research consult with a written summary. A request does not update or verify this archived article. This is business research context, not legal, tax, or investment advice.
Request a research consultSupport the EcuadorBrief archive.
Research support helps fund source monitoring, corrections, and hosting.
