Along with influencers, bookmakers and football teams, hosting platforms are under the scrutiny and control of the tax administration. They are looking for them to pay taxes and be formalized.
Within the Fair Control plan, which is promoted by the Internal Revenue Service (SRI) since the beginning of 2023, it aims to formalize and collect taxes from sectors such as influencers, sports betting houses and soccer teams.
This group is now joined by Ecuadorians who are hosts, or who provide accommodation services through digital platforms such as Airbnb, Booking, among others.
The SRI, through social networks, has launched a campaign to remember that these accommodation services must comply with certain tax obligations, in order to avoid problems with the tax authorities.
Specifically, the three main obligations that must be met, and will be controlled by the SRI, are:
1.- They must register their RUC, including economic activity: Accommodation services provided by hosts.
2.-Tax the accommodation service with 12% VAT, declare and pay this tax on time.
“If you offer accommodation, the service provided is taxed with 12% VAT. Formalize your activity and comply with your country”, says the SRI through social networks.
3.- Depending on whether you are registered in the General Regime or in the Special Regime for Popular Businesses (RIMPE) and micro-enterprises, the VAT declaration can be monthly or semi-annual. In the case of income tax, the declaration and payment is in March of each year.
To find out if it is included in the RIMPE cadastre, you can check it at this link.
Who are considered hosts in Ecuador?
To be considered a host, two aspects must be taken into account:
-It is the person who publishes the ad on digital platforms, usually the owner, administrator or occupant of real estate.
-It is the person who provides the lodging service to national or foreign guests.
According to a study carried out by the consultancy Oxford Economics, the expenses of guests, who booked accommodation offered through Airbnb, totaled $262 million in 2021. That meant around 11% of the $2,388 million billed for accommodation and food activities in the country during that year. (JS)