Ecuador Confirms VAT Application to iGaming

(AsiaGameHub) –   The tax clarification encompasses sports betting, predictions, and other sectors within the igaming industry.

Ecuador’s Internal Revenue Service (SRI) has established guidelines for taxing digital platforms and betting, with specific frameworks based on the operator’s residency and the involvement of financial intermediaries.

Ecuador.– The Ecuadorian tax authority, Servicio de Rentas Internas (SRI), has specified the rules for applying a 15 percent value-added tax (VAT) to digital services, including sports betting, predictions, and various igaming verticals.

The regulation was officially introduced through Circular No. NAC-DGECCGC26-00000004, where the agency noted that digital services provided via automated platforms with minimal human intervention are subject to the standard VAT rate. This includes sports predictions, betting, paid online games, and sports streaming.

Tax procedures vary according to the provider’s tax residency. Operators based in Ecuador are required to issue receipts and collect VAT from the consumer, handling all declarations and payments to the SRI.

For non-resident providers using payment intermediaries, these entities will serve as withholding agents, capturing 100 percent of the VAT at the point of sale for the tax authorities. If no intermediary is involved for a non-resident operator, the tax obligation falls on the consumer to file and pay the tax.

This measure is designed to bring structure to the digital sector by setting transparent tax rules and closing regulatory gaps. Additionally, the involvement of financial intermediaries improves monitoring and revenue collection.