2024-04-17 05:06:49
Suppliers, distributors and marketers have 180 days to change the labels in their entirety.
Labels marking the 12% Value Added Tax (VAT) on products will remain on hangers until their inventory is exhausted. The Ministry of Production authorized suppliers, distributors and marketers of industrialized goods and products to keep these codes.
The measure, however, is not permanent. In a statement, the State portfolio detailed that the labels on all products, nationwide, must be updated with VAT at 15% within a maximum period of 180 days. This period will run from April 1, 2024. , when the tax increase from 12% to 15% comes into effect.
In addition, it is established that suppliers and marketers must implement all information means so that the consumer knows the final prices of their products.
Sales soar before VAT hike
In the weeks before the new VAT amount came into effect, citizens have flocked to shopping centers and other commercial spaces. The goal is to make the last purchases and avoid paying the additional 3% tax.
Some shopping centers in Quito, for example, have incentives for customers. They allow payments to be made from June, and businesses provide payment facilities of 3,6,9 and up to 12 months without interest.
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For businessman Miguel Rossignoli, the increase in VAT will cause a strong commercial impact that would begin to stabilize in May with the Mother’s Day offers.
According to economic analysts, USD 1.5 billion will move in domestic trade during the last two weeks of March, before the VAT increase to 15%.
By: Ecuavisa