Ecuador's government has temporarily cut value-added tax on tourism services from 15% to 8%, under Executive Decree No. 465 signed Tuesday, August 4, by President Daniel Noboa Azin.
The reduced rate will apply Saturday, August 8, Sunday, August 9, and Monday, August 10, 2026, coinciding with the national holiday marking the First Cry of Independence and the preceding weekend.
The decision is based on an unnumbered article following Article 65 of the Internal Tax Regime Law, which allows the Executive branch to lower the general VAT rate to 8% for tourism activities during national or local holidays. The Ministry of Economy and Finance issued the required prior, binding opinion on July 27, 2026, under official communication No. MEF-VGF-2026-0465-O. The government document states the tax measure aims to boost economic activity, encourage domestic tourism, strengthen formal economic recovery and generate positive effects on tax collection.
Which services qualify
Under Article 5 of the Tourism Law cited in the decree, establishments holding a Tourism Registry and a Single Annual Operating License must apply the 8% rate to lodging such as hotels, hostels and tourist apartments; food and beverage venues including restaurants, cafes and entertainment establishments; land, air, sea and river tourist transport; travel agencies, operators and tour guides; organizers of congresses, conventions, fairs and exhibitions; and recreation centers such as theme parks, spas and community tourism sites.
Enforcement
Noboa instructed the Internal Revenue Service to immediately coordinate the technical and regulatory changes needed and ordered all qualifying establishments to issue sales receipts at the 8% rate during the three days. The decree will be carried out by the Internal Revenue Service alongside the Ministry of Production, Foreign Trade and Investments, and takes effect upon publication in the Official Registry.
