# Ecuador VAT refunds, El Niño prep, and procurement issues > Live situation record from CLSTR: https://clstr.news/situations/ecuador-vat-refund-and-state-payment-trends > Updated: 2026-09-02T22:08:54.000Z. Sources: 27. Developments: 2. In early 2026, Ecuador’s tax authority (SRI) implemented changes to the VAT refund program for seniors over 65 and persons with disabilities, narrowing eligible expense categories to food, health, clothing, housing, and education. By August 2026, government disbursements for state provider payments, public services, and VAT refunds rose by 38% compared to 2025, totaling 5,291 million USD. Within this, 321 million USD was allocated for VAT refunds, with reports indicating these specific refunds for seniors and people with disabilities have risen by 76%. To mitigate climate risks from the approaching El Niño phenomenon, the government has allocated over 100 million USD for preventive actions and infrastructure maintenance in the electricity sector. In coordination with the United Nations, efforts are also being strengthened regarding food security, health, and water sanitation, as an estimated 1.3 million people across 17 provinces face potential exposure. In response to these risks, the government has declared a red alert. Administrative challenges continue in Guayaquil, where the Municipality reports that the National Service for Public Procurement (Sercop) has suspended approximately 90% of its contracting processes. This freeze, totaling 56 million USD, affects critical sectors including health, public works, and the procurement of fuel and medicine, potentially hindering local preparations for flooding and infrastructure needs. ## Claims - Sercop has suspended approximately 90% of Guayaquil Municipality's procurement processes, totaling USD 56 million. (corroborated by 3 sources) - The suspension of contracts affects essential services including health, public works, and fuel for machinery. (corroborated by 3 sources) - Ecuador allocated USD 5,268 million to state suppliers, public services, and VAT refunds between January and August 2026. (corroborated by 2 sources) - The amount represents a 38% increase compared to the same period in 2025. (corroborated by 2 sources) - VAT refunds for seniors and people with disabilities grew by 76% compared to 2025. (corroborated by 2 sources) - Approximately 1.3 million people in Ecuador are potentially exposed to the effects of El Niño. (corroborated by 2 sources) - The government has allocated over USD 100 million for preventive actions in the electricity sector to face El Niño. (single source) - Azuay will conduct a provincial emergency drill between September 23 and 25. (single source) - Chilean exports to Ecuador reached USD 432 million between January and July 2026, a 33.2% increase. (single source) ## Timeline ### 2026-09-02: Latin American nations implement emergency measures for El Niño Latin American nations, led by Ecuador, are deploying emergency protocols, financial allocations, and international coordination to prepare for the El Niño phenomenon and its potential socio-economic impacts. 27 sources. https://clstr.news/cluster/ecuador-state-payments-and-vat-refunds-rise-38-in-2026 ### 2026-08-06: Ecuador narrows VAT refund categories for seniors, keeps $144.60 monthly cap Ecuador's SRI limits the 2026 VAT refund for seniors to five categories (food, health, clothing, housing, education) while keeping the $144.60 monthly cap; transport and communication expenses are excluded. 8 sources. https://clstr.news/cluster/ecuador-narrows-vat-refund-categories-for-seniors-keeps-14460-monthly-cap --- Cite as: Ecuador VAT refunds, El Niño prep, and procurement issues. CLSTR, https://clstr.news/situations/ecuador-vat-refund-and-state-payment-trends