Ecuador to reduce VAT to 8% for tourism services during October holiday

President Daniel Noboa has issued Executive Decree 513, which temporarily reduces the Value Added Tax (VAT) from 15% to 8% for specific tourism services in Ecuador. The reduction is scheduled to take effect during the October 2026 holiday period, specifically from Friday, October 9, through Sunday, October 11.

The measure applies exclusively to services defined as tourism activities under the Tourism Law. These include accommodation, food, beverages, entertainment, tourist agencies, tourist transport, event organization, convention centers, tour guiding, community tourism centers, theme parks, and recreational centers such as spas and thermal baths.

Establishments must issue sales receipts using the reduced 8% rate during these three days. The Internal Revenue Service (SRI) has been tasked with implementing the necessary measures to ensure compliance. Once the holiday period concludes on October 11, the VAT rate will return to the standard prevailing regime. The initiative aims to stimulate domestic tourism and boost economic activity during the national holiday commemorating the Independence of Guayaquil.