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Tax Advisory

Temporary VAT Reduction to Boost Tourism in Ecuador

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On March 31, 2026, President Daniel Noboa signed Executive Decree No. 348, establishing a temporary reduction of the Value Added Tax (VAT) from 15% to 8%.

This measure will apply during the Easter holiday period, from Friday, April 3 through Sunday, April 5, 2026, and is exclusively targeted at tourism-related services across the country.

  1. Purpose of the Measure

The VAT reduction aims to:

  • Support the economic recovery of the tourism sector.
  • Encourage domestic demand during the holiday period.
  • Promote the consumption of tourism services nationwide.
  1. SCOPE

This benefit applies only to activities classified as tourism services under current regulations and during the period established by the Executive Branch.


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This publication contains information of general interest and does not constitute legal opinion on specific issues. Any analysis will require legal advice from the Firm.