President Daniel Noboa has announced a temporary reduction of the Value Added Tax (VAT) from 15% to 8% for tourism-related services during the upcoming Carnival holiday. This measure, established by Executive Decree No. 304, will be in effect from Saturday, February 14 to Tuesday, February 17, 2026.
The reduced VAT rate applies only to businesses listed in the national registry of establishments and holding an official tourism registration published on the institutional website of the Vice Ministry of Tourism. These businesses must also have a valid Tourism Registration and an Annual Single Operating License for each tourism activity they offer.
Eligible businesses are required to issue sales receipts reflecting the new 8% VAT rate according to current regulations.
Tourism activities covered under Article 5 of the Tourism Law include accommodation; food, beverages, and entertainment; travel agencies; tourist transportation; event organizers for congresses, conventions, meetings, incentives, conferences, fairs and exhibitions; convention centers and banquet halls; tour guiding; community tourism centers; theme parks and permanent attractions; as well as spas, hot springs, and recreation centers.
According to government officials, this initiative aims to encourage citizens to travel within Ecuador and make use of its diverse tourism offerings. The government expects that this move will help stimulate local economies and support ongoing efforts to revitalize the tourism sector.
“The National Government seeks to promote that citizens travel through different regions of the country and consume Ecuador’s wide range of tourist offerings. This will contribute to boosting local economies and strengthening the process of reactivating the tourism sector,” stated officials in their announcement.
