On March 26, 2026, the Internal Revenue Service issued Circular No. NAC-DGECCGC26-00000002, providing a ruling on the 15% VAT rate applicable to the importation and transfer of food products. This circular has been submitted to the National Customs Service of Ecuador regarding the assessment, liquidation, and collection of VAT in the nationalization of goods entering the country. The tax administration's ruling establishes a reference list regarding numerals 1, 2, and 3 of Article 55 of the Internal Tax Regime Law, applicable to local transfers or importation of goods, as detailed below:

• Agricultural food products in their natural state (Art. 55 No. 1): pulps, prepared beverages, processed juices, ready-to-consume infusions, tofu, soy cheese, cooked meats, dressings or other processes, as well as mixtures or combinations of these products.
• Milk and dairy products (Art. 55 No. 2): imported or lactose-free milk, flavored milk, milk enriched with vitamins or nutrients (except for infant formulas), as well as derived products such as condensed milk, evaporated milk, cream, whey, and others that have undergone processing.
• Processed products (Art. 55 No. 3): bakery and pastry products such as cakes, biscuits, cookies; empanadas; prepared, pre-cooked, or cooked pasta and noodles, processed or ready-to-consume foods, canned fish and its preparations, sweeteners, among others. The circular specifies that when individual goods are marketed in sets, batches, or grouped presentations, they will be taxed at the 15% VAT rate if at least one of the products included in the group is subject to said rate.

This is a summary of the relevant tax aspects contained in Circular No. NAC-DGECCGC26-00000002, and does not necessarily reflect the opinion of Robalino®; therefore, it cannot be considered as legal advice provided.

Should you require further information regarding this content, please do not hesitate to contact us at unidadtributaria@robalinolaw.com