New Obligations in Ecuador for e-Invoicing Implementation

New Obligations in Ecuador for e-Invoicing Implementation

28/11/2017

Ecuador’s Internal Revenue Service published a resolution requiring new taxpayers to issue electronic invoices starting on January 1, 2018. In 2014, the Internal Revenue Service launched a progressive schedule for adopting the electronic invoice, which required certain companies and entities to join this system.

With Resolution NAC-DGERCGC17-00000430, new taxpayers were required to issue sales vouchers, proofs of retention, and complementary documents electronically according to the following characteristics:

  • Suppliers of the state whose invoicing in the previous fiscal year is equal to or greater than double the value of established income required to keep accounting records;
  • Taxpayers whose invoicing in the previous fiscal year is equal to or greater than double the value of established income required to keep accounting records;
  • Natural people or companies whose annual income from the previous fiscal year is equal to or greater than the amount contemplated for small and medium-sized enterprises;
  • Taxpayers subject to Special Consumption tax;
  • Taxpayers subject to Redeemable tax on non-returnable plastic bottles;
  • Taxpayers who asked the Internal Revenue Service to return the redeemable tax on non-returnable plastic bottles;
  • Producers and marketers of alcohol;
  • Holders of mining rights, excluding those under the artisanal mining regime;
  • Taxpayers who develop the economic activity of processing and refining cane sugar.

Through Resolution NAC-DGERCGC18-00000431, the Internal Revenue Service reforms two previous resolutions relating to taxpayers obliged to issue invoices, withholding receipts, referral guides and credit and debit notes through data messages and electronically signed: Resolutions NAC-DGERCGC17-00000430 and NAC-DGERCGC18-00000191.

The reform ruling updates the calendar contained in Resolution NAC-DGERCGC18-00000191, which details the start date of the obligation to issue electronic invoices for some taxpayers. The key dates are as follows:

As of 1 January 2019:

  • Those engaging in marketing activities for new land transport vehicles, including motorcycles.
  • Individuals and companies that carry out activities related with the sale of liquid fuels derived from hydrocarbons and biofuels.

As of 1 June 2019:

  • Importers - individuals and companies - engaging in local sales activities for imported products.
  • Individuals and companies whose income from sales to the State in the previous tax year is equal to or greater than USD 100,000.

As of 1 January 2020:

  • Those involved in commercialization of heavy machinery and new or used roadbuilding equipment, whose sale responds or not to a habitual activity.

As of 1 June 2021:

  • Natural persons and companies, not included in the previous groups, in transactions with the State for amounts equal to or greater than USD 1,000.00, must issue an electronic invoice for each transaction.

As of 1 January 2022:

  • Individuals and businesses, with the exception of companies covered by the Simplified Regime established in the Regulation for Application of the Internal Tax Regime Law and individuals domiciled in the province of Galapagos that do not maintain premises in continental Ecuador, with an annual income between USD 200,000.01 and USD 300.000,00.

As of 1 January 2023:

  • Individuals and businesses, with the exception of companies covered by the Simplified Regime established in the Regulation for Application of the Internal Tax Regime Law and individuals domiciled in the province of Galapagos that do not maintain premises in continental Ecuador, with an annual income between USD 100,000.01 and USD 200.000,00.

An automatic solution for issuing electronic vouchers

EDICOM has developed an international platform for electronic invoicing that makes it possible to generate, send and store electronic vouchers in accordance with the requirements established in Ecuador. The process is automatic, so companies reduce the amount of time spent on these administrative tasks.

Implementing the electronic invoice is quick and easy. All Ecuadorian taxpayers who wish to adopt this new electronic system can do so using EDICOM’s services.

e-Invoicing Platform

A single solution that lets you issue electronic invoices in any country worldwide

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