Expense management module › Global expense management › Ecuador
Last updated : 11.05.2026
Expense rules in Ecuador.
Ecuador applies VAT (IVA) at 15% since 2024. Dollarized economy (USD) with digitalized SRI tax authority (electronic invoice mandatory).
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1Expense rules & reclaimable VAT
IVA increased from 12% to 15% in April 2024. Electronic invoice mandatory (RIDE/XML).
| Category | VAT | Reclaim | Cap / Note |
|---|---|---|---|
| Meals | 15% | Deductible | Electronic invoice + RUC |
| Lodging | 15% | Deductible | Company RUC on invoice |
| Alcohol | 15% | Limited | Excluded from business meals |
| Fuel | 15% | Deductible | Electronic invoice |
| Transport | 15% | Deductible | Taxi/Uber/airfare |
| Client gifts | 15% | Non-deductible | Strict cap |
Receipt
Electronic invoice
RIDE + signed XML
Meal cap
<= $40/pers
Above: justify
SourcesEcuador Tax Authority
2Mileage allowance
No official mileage scale. Actual reimbursement on receipts (fuel + tolls).
| Mode | Allowance | Cap | Note |
|---|---|---|---|
| Personal car | – | Fuel + tolls | On electronic invoice |
| Company car | – | Fuel card | – |
| Taxi/Uber | – | 100% on receipt | Electronic invoice |
Tracking
Logbook
Date, distance, purpose
SourcesEcuador Tax Authority
3Per diem and travel allowances
No official tax per diem. Company policy by city: Quito and Guayaquil most expensive.
| Destination | Meal | Lodging / night | Daily rate |
|---|---|---|---|
| Quito | $30 | $90 | $150 |
| Guayaquil | $32 | $95 | $160 |
| Cuenca | $25 | $70 | $120 |
| Other cities | $20 | $55 | $95 |
Currency
USD
Dollarization since 2000
SourcesEcuador Tax Authority
4Foreign VAT recovery
No IVA recovery for non-resident companies. Residents: monthly IVA credit.
| Zone | Mechanism | Deadline | Method |
|---|---|---|---|
| Resident companies | IVA credit | Monthly | Form 104 |
| Non-resident companies | None | – | Final cost |
| Free zones (ZEDE) | Exemption | On entry | ZEDE regime |
Statute of limitations
6 years
Keep invoices
SourcesEcuador Tax Authority
Centralize your Ecuador expenses
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