Ecuador

Ecuador

With over 16 million inhabitants on a territory the size of Nevada, Ecuador is one oft he smallest LATAM countries. Nevertheless, Ecuador has excellent trade relations to the US which incentivize companies to settle there. What makes Ecuador stand out from its neighbor is its introduction of the Dollar to fight its high inflation rates as well as attract FDIs. Tax incentives n the sectors of food production, petrochemistry, renewable energies, tourism, biotechnology, and software have stabilized the Ecuadorian economy. Despite one of the highest minimum wages in Latin America (375 USD) corruption is widespread in Ecuador. The country only ranks 117 out of 180 countries in Transparency International`s Corruption Perception index of 2017. Respective legislation fighting corruption is currently being implemented.

 

e-Invoicing

Parallel to its online e-invoicing system Ecuador introduced an alternative offline version in 2015 which is being monitored by the tax authority Servicio de Rentas Internas (SRI). Invoices exceeding the total value of 4 USD have to be issues via e-Invoicing. With the online version – which has been discontinued in 2017 – a company had to wait for the government to issue verification codes. With the now installed offline version companies can generate their own access keys. Those are being used to generate an invoice and send it to both the client (accompanying the goods) and the SRI within 24 hours. The self-generated code allows the government to track both the invoice and the delivered goods. The adaptation of the system enables the SRI to keep possible infringements under control while streamlining the invoicing system. After receiving the goods, the client has to validate the invoice via the SRI website. All documents need to be saved for at least seven years. More...

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