SRI Makes IVA Declarations Valid Only With Payment Starting June 1

Ecuador's tax authority is tightening monthly IVA compliance.

Primicias reports that, starting June 1, the Servicio de Rentas Internas (SRI) will consider IVA declarations fulfilled only when they are registered together with full payment.

The outlet cites an SRI resolution dated April 16.

Compliance Change

Primicias reports that natural persons and legal entities must file IVA monthly under the calendar established by the SRI, based on the ninth digit of the RUC.

The SRI said the IVA declaration will be considered fulfilled only when it is filed with full payment.

Penalty Exposure

Primicias reports that a late IVA filing generates a 3% penalty on the amount payable after subtracting purchase IVA and applicable tax credit from sales IVA.

If no IVA is determined in the declaration, the penalty is 0.1% of sales or gross income received for each month or fraction of a month of delay, capped at 5%.

The outlet notes that even a one-day delay counts as a late month or fraction for penalty purposes.

What To Watch

• SRI portal performance around June filing dates.
• Cash-flow pressure for companies that previously filed before payment.
• Advisory demand from accountants and tax firms as June filings begin.
• Whether SRI issues additional guidance for edge cases or payment-system failures.

Source: Primicias