2024-04-02 09:59:13
The Internal Revenue Service (SRI) has published the list of construction materials that will be subject to the Value Added Tax (VAT) of 5%. This measure is implemented to comply with the provisions of the Law to Confront Internal Conflict, sent by President Daniel Noboa to the Official Registry, on Tuesday, March 12, 2024. The list of affected materials is detailed below:
- Reinforcement Steel Bars: AS42 corrugated laminated rod of eight millimeters, 10 millimeters and 12 millimeters in diameter.
- Arid: Clay, sand, lime, limestone and stones.
- Concrete: Ready-mixed concrete.
- Binders: cement and its derivatives; cement waste.
- Recyclable metal materials: Ferrous scrap. Mortars.
- Cement Precursor: Clinker, pozzolana and gypsum.
- Precast concrete and clay: Pavers, blocks, bricks and precast concrete products.
The Internal Revenue Service (SRI) has announced that to issue sales receipts related to the sale of construction materials, establishments must incorporate into their electronic receipt systems the specific code provided for this purpose.
They will have a period of three months for this, in the meantime they will be able to continue using their own codes, the SRI reported.
This measure, according to the Government, complements the Law of Economic Efficiency and Employment Generation, which establishes the refund of VAT on real estate projects. The VAT reduction to 5% for construction materials represents a discount of 10 percentage points compared to the general rate of 15%, which will come into effect on April 1, 2024.
This measure, according to the Government, is complementary to the Law of Economic Efficiency and Employment Generation that orders the refund of VAT on real estate projects.
The fact that construction materials have a VAT of 15% will represent a discount of 10 points compared to the general rate that will apply from April 1, 2024 and will be 15%.
