IVA Refund Dispute Reaches Constitutional Court as SRI Refunds Fall 28.5%
A dispute over IVA refunds to older adults has moved to Ecuador's Constitutional Court, adding litigation risk to a fiscal flow that is already declining year over year.
The Frente Nacional del Nuevo IESS filed an extraordinary protection action on June 1, 2026, after the Pichincha Provincial Court rejected an earlier protection action.
The group alleges delays in IVA refunds to older adults and lower refund amounts following a regulatory change early this year.
Refund Framework
The current maximum monthly IVA refund is USD 144.60, equal to 15% of two unified basic salaries totaling USD 964.
The categories currently eligible for refund are:
- Food
- Clothing
- Health
- Education
- Construction
Excluded categories named in the dispute include fuel, transportation, culture, communication and sports.
Fiscal Data Point
| Item | Figure |
|---|---|
| Cash tax refunds, Jan-Apr 2026 | USD 134.5M |
| Year-over-year change | -28.5% |
| Maximum monthly IVA refund | USD 144.60 |
| Calculation basis | 15% of two SBU |
| Two SBU value cited | USD 964 |
The USD 134.5 million figure includes cash refunds already paid for taxes including IVA refunds to people with disabilities, older adults and exporting companies.
Business Signal
The immediate fiscal question is whether delayed or reduced refund outflows are temporary administrative timing or a more durable policy shift.
For exporters and tax-credit-sensitive sectors, the broader signal is refund liquidity. For households, the pressure point is narrower but politically sensitive because the dispute involves older adults and statutory tax benefits.
What to watch
- Whether the Constitutional Court admits the extraordinary protection action.
- SRI's breakdown of 2026 refund amounts by beneficiary group and period.
- Whether the narrower eligible-category list remains in force.
- Whether refund timing becomes a broader fiscal-liquidity indicator.
Source
Primicias — “Jubilados presentan acción extraordinaria ante la Corte por atrasos en la devolución del IVA a adultos mayores”
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