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Ecuador Tax Information

12% IVA

IVA is 12%. Electronic invoicing mandatory. RUC required for all businesses.

Contractor Services to Invoice

  • Labor charges
  • Material costs
  • Equipment rental
  • Permit fees
  • Subcontractor work
  • Change orders
  • Warranty work

Invoice Requirements in Ecuador

RUC number
SRI registration
Client RUC
Electronic invoice
IVA (12%)
Total in USD

Payment Terms

Progress billing at milestones. Retain 5-10% until final inspection.

Contado15 días30 díasCrédito

Payment Methods in Ecuador

Bank TransferBanco PichinchaProdubancoCredit CardCash

Contractor Invoice Tips

  • Break down materials and labor
  • Reference permits
  • Document change orders
  • Include lien waiver language
  • Track progress payments

Frequently Asked Questions

What tax rate applies to contractor invoices in Ecuador?

Ecuador has 12% IVA. IVA is 12%. Electronic invoicing mandatory. RUC required for all businesses.

What payment methods are common for contractors in Ecuador?

Common payment methods in Ecuador include: Bank Transfer, Banco Pichincha, Produbanco, Credit Card, Cash. Progress billing at milestones. Retain 5-10% until final inspection.

What should contractor invoices include in Ecuador?

Your invoice should include: RUC number, SRI registration, Client RUC, Electronic invoice. For contractor services specifically, also include: Labor charges, Material costs, Equipment rental.

How should contractors bill for projects?

Progress invoicing at milestones. Break down labor, materials, and subcontractor costs.

How do contractors handle material markup?

15-25% markup is standard. State policy in contracts.

What is Ecuador's IVA rate?

Ecuador applies 12% IVA on most goods and services. Basic necessities may be 0%. Exports zero-rated.