VAT on Digital Services in Ecuador 2026: New SRI Regulation for Online Gaming and Digital Platforms

The growth of the digital economy has led to new tax regulations across Latin America, and Ecuador is no exception.

The Internal Revenue Service (SRI) issued Circular No. NAC-DGERCGC26-00000004, establishing the application of a 15% VAT on digital services, directly impacting companies involved in online gaming, sports betting, streaming, and digital platforms.

If your company operates in this sector, understanding these changes is not optional—it is essential to avoid penalties and ensure tax compliance.

What changes with the new SRI regulation?

The circular establishes that all automated digital services provided via the internet are subject to VAT in Ecuador.

This includes:

Sports betting platforms
Online gaming (igaming)
Event streaming services
Digital platforms with automated models

In other words, any digital service that operates without direct human intervention falls into this category.

Legal framework for VAT on digital services in Ecuador

This regulation is based on:

Article 56 of the Internal Tax Regime Law
Article 140, paragraph 1, of its Regulation

These provisions classify such services as VAT-taxable activities, even when the provider is located outside Ecuador.

Who is responsible for declaring and paying VAT?

Responsibility depends on the operating model:

Platforms registered in Ecuador

Companies with a local presence must:

Invoice VAT
Collect it
Declare it directly to the SRI

Foreign providers

If the company is not registered in Ecuador:

VAT is automatically withheld by banks or credit card providers

No financial intermediaries

In this scenario:

The end user is responsible for declaring and paying the tax

This represents one of the highest compliance risks.

Impact on digital businesses

This regulation creates new operational and tax challenges:

Adapting billing systems
Controlling digital transactions
Integrating with payment gateways
Ensuring compliance across multiple jurisdictions

Failure to comply may result in fines, operational restrictions, and reputational risks.

How to prepare for VAT compliance on digital services in Ecuador

To adapt effectively, companies should:

Automate tax processes
Ensure traceability of digital revenues
Integrate accounting systems with payment platforms
Use solutions that support LATAM regulations

This is where technology becomes essential.

At LLB Solutions, we support digital companies in achieving tax compliance across Latin America through:

Implementation of Microsoft Dynamics 365 Business Central with LATAM localization
Automation of tax calculation and reporting
Integration with digital platforms and payment systems
Real-time tax compliance

Our approach helps reduce risks and optimize your company’s financial operations.

The application of VAT on digital services in Ecuador in 2026 marks a significant step in regulating the digital ecosystem.

Companies that adapt quickly will not only avoid penalties but will also be better positioned to scale in an increasingly regulated environment.

Is your company ready to comply with these regulations?

Discover how to automate your tax compliance across Latin America with LLB Solutions.

info@llbsolutions.com | Ecuador Localization

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