Who will be the beneficiaries of the refund of VAT paid on constructions? – The Nation

The beneficiaries of the VAT refund on constructions are individuals who build their own homes and companies that develop real estate projects.

Who are the beneficiaries?

The benefit applies to natural persons and companies who have paid VAT to SRI in services and in local purchases or imports of goods for the construction of own homes or real estate projects. Invoices apply from January 1, 2024.

The VAT refund applies to the new and regular constructions by the municipalities, he pointed out Henry Yandúnpresident of Positive Builders. The spirit of this standard was born to boost the construction sector, he said.

The applicants for the VAT refund must follow a prevalidation process and submit your applications monthly for each construction project. The required documents include proof of project registration before the Ministry of Urban Development and Housing (Miduvi) and the SRI, a copy of the enabling title for construction, and a pre-validation report of the sales receipts or invoices.

VAT refund limits

For home ownership projects, the VAT refund limit is 7% of the cost of the property, which must not exceed 229 basic salaries, that is, $105,340, this 2024. The refund may be up to $7,300. The beneficiary cannot build more than two homes each year.

In the case of the real estate projects of construction companiesthe VAT refund will not exceed 6.5% of the total referential cost of the project, without spending limit.

VAT refund procedure

1. Prevalidation Requirement. Applicants must carry out the prevalidation process through the SRI web portal (www.sri.gob.ec) or directly at the SRI counters.

1. Submission of the Application. Applications must submit the VAT refund request for each project monthly. They must use the format available on the SRI website.

General application requirements

1. Proof of project registration. Registration of the project before the Ministry of Urban Development and Housing (Miduvi) and in the SRI.
2. Copy of the enabling title for construction. This document is granted by the Municipality, that is, the construction of the home must be regularized.
3. Prevalidation report of sales receipts or invoices. Download the pre-validation of invoices from the SRI web portal.
4. List of sales receipts. Format published on the SRI web portal. Include all physical and electronic receipts that support the total value of the VAT declared. Legible copies of physical receipts must be attached.
5. Digital documents can be presented in digital format (PDF, Excel, Open Office) on non-rewritable devices (CD, DVD, removable memories, external drives).
6. A letter of certification and responsibility for the information must be included.

By: THE TRADE