Ecuador confirms VAT on igaming
The tax clarification covers betting, sports predictions and other verticals linked to igaming.
The Ecuadorian Internal Revenue Service (SRI) has established criteria for taxing betting, sports predictions, and other digital platforms, with different schemes depending on the operator’s residency and their role as financial intermediaries.
Ecuador.– The Ecuadorian tax agency Servicio de Rentas Internas (SRI) has defined the criteria for applying the 15 per cent value added tax (VAT) on digital services, including betting, sports predictions and other verticals linked to igaming.
The measure was formalised through Circular No. NAC-DGECCGC26-00000004, in which the agency specified that all digital services provided via the internet or technological platforms that are automated and require minimal human intervention will be subject to the current general VAT rate. This includes betting, sports predictions, paid online video games and the streaming of sporting events.
The tax treatment varies depending on the service provider’s tax residency. Operators resident in Ecuador must issue sales receipts and transfer the VAT directly to the end consumer, assuming full responsibility for declaration and payment to the SRI.
Non-resident operators with payment intermediaries will see these act as withholding agents, withholding 100 per cent of the VAT at the time of the transaction and transferring it to the tax authorities. For non-resident operators without intermediaries, the administrative burden falls on the user, who must issue the corresponding tax return, declare and pay the generated tax.
The measure aims to formalise the digital sector by establishing clear rules for taxation and eliminating regulatory grey areas. At the same time, the role assigned to financial intermediaries strengthens control and collection mechanisms.
