Ecuador Sets 15% VAT On Online Betting And Gaming
Ecuador.– April 15, 2026 – www.zonadeazar.com The tax authority introduces a new fiscal framework impacting both local and international operators in the digital ecosystem.
Overview
Ecuador is advancing the regulation of online gaming by defining the application of a 15% Value Added Tax (VAT) on sports betting, predictions and other digital services linked to iGaming. The measure, introduced by the Internal Revenue Service (SRI), marks a key step towards formalising and controlling the sector.
The new tax framework aims to capture revenue from the growing digital ecosystem, aligning Ecuador with regional trends in online gambling taxation.
Details / Context
The SRI confirmed that all automated digital services delivered via internet platforms — including betting and sports predictions — will be subject to the standard 15% VAT rate.
The regulation introduces a differentiated scheme based on the operator’s status:
- Resident operators must invoice, collect and declare VAT directly to the end user.
- Non-resident operators with payment intermediaries will have VAT automatically withheld.
- Non-resident operators without intermediaries shift the tax obligation to the user.
This structure ensures coverage of both domestic and international platforms, a key aspect in a cross-border market.
Specific subtopics
The explicit inclusion of sports betting, paid online gaming and streaming services removes regulatory grey areas and expands fiscal oversight.
Financial intermediaries acting as withholding agents strengthen tax collection in cross-border transactions, historically a major challenge.
However, the measure also raises industry concerns, particularly regarding the taxable base, as deposits may be taxed rather than net revenue, potentially impacting operational models.
Future outlook
The implementation of a 15% VAT establishes a new framework for iGaming in Ecuador, where taxation becomes a central pillar of market development.
Going forward, the challenge will be balancing tax collection with market competitiveness, avoiding incentives for informal or offshore operations.
This move places Ecuador within a clear regional trend: integrating online gaming into formal tax systems with greater control and transparency.
🔗 Edited by: @_fonta www.zonadeazar.com
