Starting September 16, 2020, the tax administration of Ecuador will begin to enforce the collection of VAT on digital services supplied by providers not domiciled or established in that country. As a result of decree 1114/2020, foreign suppliers have the option of registering at the tax administration and applying 12% on the provision of these services to local customers not registered for VAT purposes (B2C). If a foreign provider fails to do so, the the financial entity used to pay for the services shall retain the applicable VAT. When the customer of the foreign supplier of digital services is a registered taxpayer for VAT purposes in Ecuador (B2B), such a business customer must retain the VAT and issue the corresponding invoice, known locally as “settlement of purchase of goods and provision of services,” which will specify the amount paid for the service and the VAT applied. You may access the decree here.