Electronic Invoicing in Ecuador

Electronic invoicing in Ecuador is in the final stages of its implementation. Initiated in 2014 by the Internal Revenue Service of Ecuador - SRI, the project was completed in November 2022 with the inclusion of 100% of all taxpayers.

Electronic Invoicing System in Ecuador

The electronic invoicing system in Ecuador follows an emission model called “Offline”. “Comprobantes electrónicos” are the name given to electronic invoices. Electronic invoices are generated and signed through the electronic invoicing platform contracted by the issuer. These electronic invoices are sent to the SRI, which validates and authorizes them. Once validated and authorized, they are sent to the recipient, including the authorization code assigned by the SRI, along with a graphical representation called RIDE. It is important to note that recipients must have given their consent to receive electronic invoices. In case there is no recipient consent, or if the recipient expressly requests the printed invoice, the issuers must print and deliver the RIDE.

Requirements for Becoming an Electronic Invoice Issuer

• Have an electronic signature certificate.
• Have a solution for generating electronic invoices in accordance with the technical requirements of the SRI.
• Be registered with SRI en Línea (Form 361).
• Have a registered debit agreement (Convenio de débito).

Electronic Invoices

Electronic invoices are electronic format tax documents that comply with the legal and regulatory requirements of the SRI.

Types of Electronic Invoices

• Invoices
• Purchase orders for goods and services
• Credit notes
• Debit notes
• Withholding certificates
• Dispatch Avises

Format

Structured file XML format with Digital Signature. XML 1.0.

Storage

Mandatory for both the issuer and recipient to store electronic invoices for 7 years.

New Resolution No. NAC-DGERCGC24-00000008 

The Internal Revenue Service (IRS) announced on February 29, 2024, significant tax modifications with the issuance of RESOLUTION No. NAC-DGERCGC24-00000008, which establishes new withholding rates starting from March 2024. 

The update, detailed in version EC v2.26, includes significant changes that impact both the Value Added Tax (VAT) and the income tax withholding percentages.

Key elements of the regulation include:

• New 13% VAT rate: An adjustment to the VAT rate has been made, setting it at 13%.
• Updated income tax withholding percentages: New income tax withholding rates at the source have been set, which must be applied by taxpayers when making payments or crediting taxable income.

The withholding percentages vary between 0% and 10%, with different scales detailed in the resolution. Additionally, it is specified that payments not covered by specific withholding percentages will be subject to a 2.75% withholding.

Key aspects of the regulation cover withholding for payments made to non-residents for occasional services, the application of multiple percentages depending on the type of income, and some specific exceptions. 

It is important to note that withholding will be carried out at the time of payment or credit to the account, whichever occurs first. On the other hand, payment aggregators and online marketplaces are allowed to issue a single withholding certificate that covers all transactions carried out during a month.

These measures represent a significant adjustment in tax obligations and aim to strengthen the fiscal system to ensure fairness and efficiency in tax collection.

Automatic Solution for Issuing Electronic Invoices

EDICOM has developed an international electronic invoicing platform that allows generating, sending, and storing electronic invoices in accordance with the requirements established by the Internal Revenue Service of Ecuador.

This process is carried out automatically, reducing the time spent on these administrative tasks for businesses. The implementation of electronic invoicing is fast and straightforward. All Ecuadorian taxpayers who wish to can adopt this new electronic system using the services of EDICOM.