More than 12,200 tourist establishments and businesses are authorized to charge 8% VAT on all contracted services during holidays.
during the next holiday of Carnivalfrom February 26 to March 1, 2022, will apply for the first time the reduction from 12% to 8% of VAT in all services related to tourism.
Accommodation in a hotel in Esmeraldas during those days, car rental for tourist activities in Guayaquil, or a package to visit various places in the Amazon. These are some of the examples of what can be purchased with the reduced tax.
In the case of restaurants and cafeterias, the benefit apply in the establishments that appear in the cadastre of the Ministry of Tourism.
Specifically, according to the Internal Revenue Service (SRI), the lowest rate of VAT It is valid for all the services indicated in article 5 of the Tourism Law, that is, “accommodation; food and beverage service; transportation dedicated to sightseeing; air, sea, river, land transport and the rental of vehicles for this purpose; operation, when travel agencies provide their own transportation; that of intermediation, tourist services agency and organizers of events, congresses and conventions; and, casinos, game rooms, racetracks and amusement parks”.
Does the discount apply only to what is consumed on the holiday?
According to him Ministry of sightseeingthe VAT from 12% to 8% will only apply for services that are consumed and billed during the carnival holiday. That is, if it is purchased in advance of those dates, the benefit is lost.
However, Alberto Morán, a hotel entrepreneur, explained that one of the strategies is to accept advances and settle the account later.
In the case of air tickets or tourist packages, the reduction It will not be only for what is used on those dates, but also for what is canceled on those days and consumed later. Customers are advised to find out the policies of each site before hiring a service.
In addition, another important issue is to review the cadastre of the Ministry of Tourismdetailing the list of businesses authorized to apply the VAT reduction from 12% to 8%.
Currently, this cadastre has 12,234 registered establishments, including bars, restaurants, hotels, tourist transport, agrotourism farms, travel agencies. The list can be reviewed at this link.
The recommendation for entrepreneurs in the sector is to verify that the cadastre is up to date, and if your establishment does not appear, you can write to the email [email protected]
Until February 16, 2022, the RUC and all the business information can be sent to be included in the Ministry’s records. With that, you will not only be able to charge less VAT at carnival holidaybut also at Easter.
The third general provision of the Economic Development Law empowers the President of the Republic to reduce the VAT from 12% to 8% in tourist activities up to 12 days a year during holidays and weekends, whether unified or divided, and at the national or regional level.
With Decree 339 of January 31, seven of those days were defined, in Carnival and Easter.
According to Holbach Muñeton, president of the Federation of Chambers of Tourismthe next holiday It will serve as a test and results could be seen and then adjustments made in a second stage.
One of those settings could be the 0% rate app VAT in places with lower hotel occupancy, and that are further behind in the reactivation. Thus, incentives would be generated so that national tourists do not congregate in just a few places. (JS)
DATA.- If the reduction of the VAT for 12 holidays in 2022, the fiscal sacrifice (what is not collected) would add up to almost $4 million.
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