Ecuador raises its general IVA rate from 13% to 15% from 1 April 2024 (Decreto Ejecutivo 198)
This page records one dated change. For the rules in Ecuador as they stand today, see the Ecuador guide →
- Jurisdiction
- Ecuador
- Tax
- IVA
- Change type
- Rate change
- Status
- In force
- Impact
- FYI
- Announced
- 18 March 2024
- Effective
- 1 April 2024
- Authority
- Presidencia de la República del Ecuador
- Verified
- Fetched from official source · medium confidence
All suppliers and importers charging Ecuador's general IVA rate; the 5% construction rate and 0% supplies are not covered.
No action — historical reference. The 15% rate has been in force since 1 April 2024 and remained for 2025 (see ec-iva-15pct-decreto-470-2024).
Decreto Ejecutivo 198 (reported as signed 15 March 2024 and published in Registro Oficial Suplemento 520 on 18 March 2024; the publication details are not confirmed from an official text) raised Ecuador's general IVA rate from 13% to 15% for 2024, from 1 April 2024. It used the power granted by the Ley Orgánica para Enfrentar el Conflicto Armado Interno, la Crisis Social y Económica (RO 516-S).
What changed in detail
Using the power granted by the Ley Orgánica para Enfrentar el Conflicto Armado Interno, la Crisis Social y Económica (Registro Oficial 516-S, 12 March 2024), the President of Ecuador issued Decreto Ejecutivo 198. It raised the general IVA rate from 13% to 15% for 2024.
The Ministry of Economy and Finance states that the decree applied from 1 April to 31 December 2024. The SRI’s IVA rate table lists Decreto Ejecutivo No. 198 with a 15% rate for the general sector, “during 2024, from 1 April 2024”. The 15% rate is the ceiling of the 13–15% band the law allows the President to set.
The decree changed only the general rate. The 5% rate for construction materials and inputs, set by the law itself, is listed separately by the SRI.
The Ministry’s July 2025 fiscal-plan report records IVA revenue for 2024 USD 1,280.2 million higher than in 2023, an increase of 20.4%. It attributes this, among other factors, to the law and to Decreto Ejecutivo 198.
What it means
The decree is spent as written: it covered 2024 only. The rate did not fall back to 13%, though. Decreto Ejecutivo 470 kept 15% for 2025, and an SRI circular of 2 April 2026 (NAC-DGECCGC26-00000005) still calls 15% the rate in force.
One thing is easy to misread. The SRI’s rate table still names only Decreto 198 against the 15% general rate, with a 2024 validity. That reflects how the table was last updated, not a return to 13%. The legal basis for the band is the 2024 law.
Proof
Mediante Decreto Ejecutivo Nro. 198, el Presidente de la República dispuso la modificación de la tarifa del IVA del 13% al 15% para el año 2024, con vigencia del 1 de abril al 31 de diciembre de ese año.By Executive Decree No. 198, the President changed the IVA rate from 13% to 15% for 2024, in force from 1 April to 31 December of that year.
Source snapshot of the official page. Open full size ↗Archived from the official distribution · Ministerio de Economía y Finanzas — Informe de Seguimiento al Plan de Fortalecimiento y Sostenibilidad Fiscal, julio 2025 (p. 6) · www.finanzas.gob.ec