SRI identifies scams in VAT refunds to senior citizens

2024-08-21 10:57:01

The SRI adjusts the VAT refund mechanisms for people with disabilities and senior citizens in Ecuador.

He Internal Revenue Service (SRI) makes adjustments to apply the change in the value added tax refund (VAT) for senior citizens and people with disabilities.

The entity reported on July 18, 2024 that make the list of the establishments authorized and promotes the automatic return of the tax. The objective is to avoid scams for vulnerable groups and the State.

The tax administration reported that for facilitate VAT refunds For older adults and people with disabilities, return mechanisms are promoted based on the information on electronic invoices with the current rate (15%). In addition, the SRI verifies that the VAT has been effectively declared and paid by the supplier.

For this reason, the Organic Law for the Strengthening of Tourism Activities and Employment Promotion established that the VAT refund will be made only for the consumption made in establishments authorized by the SRI.

Currently, the SRI works on the list from authorized establishments and will publish it in due time. While this is happening, the refund mechanisms continue to apply upon request or automatically with respect to consumption made in any establishment.

Automatic VAT refund

In addition to the right to a VAT refund through a face-to-face or virtual application, in force, there is the mechanism of automatic return. This allows these groups not to pay VAT on the acquisition of their personal consumption, since in the time of purchase This amount is deducted directly from the electronic invoice.

With the automatic returnThe SRI also seeks to prevent abuse and manipulation by unscrupulous third parties towards priority groups.

Main VAT refund scams

The SRI identified various types of fraud and schemes against senior citizens and people with disabilities, which are detailed below:

1. Scammers deceive to people with disabilities and older adults to obtain the access code to the SRI’s online services in exchange for a supposed fee bonoThey then create and manage bank accounts for them to receive and appropriate the VAT refunds that correspond to them.
2. Others unscrupulous peoples request VAT refunds in the name of people with disabilities and senior citizens, using invoices for non-existent transactions. Once they receive the refund, they cancel said documents to evade the control of the SRI. In other words, these people receive a refund for a tax that was never paid.