Ecuador introduces 15% VAT on betting

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In Ecuador, the tax authority Servicio de Rentas Internas (SRI) has extended a 15% VAT to sports betting.

How VAT applies to betting

Clarification NAC-DGECCGC26-00000004 dated March 31, 2026 sets out the taxation rules for operators and players.

For resident operators, the document explicitly defines player deposits as the tax base. This means VAT is calculated on the amount deposited into an account.

For non-resident operators, the responsibility for withholding the tax is assigned to financial intermediaries, including banks and card issuers.

If no intermediary is involved, the player must declare and pay VAT independently.

Legal assessment of the measure

iGaming lawyer Tatiana Vásquez (Vasquez & Asociados) notes that, from a legal standpoint, a deposit is neither operator revenue nor evidence of a service being provided.

In her view, applying VAT to deposits effectively shifts the taxable event to an earlier stage.

It is also emphasized that the SRI introduced this measure through a clarification rather than a law or decree, which reduces legal certainty.

The situation is compared to the approach in Colombia, where a similar measure was introduced under Decreto 175 (2025).