Ecuador Adjusts VAT Refund System for Seniors with New SRI Categories

Ecuadorian seniors and individuals with disabilities seeking Value Added Tax (VAT) refunds must now adhere to new categories established by the Internal Revenue Service (SRI). Beginning February 2026, expenses related to transportation, mobility, and communication are no longer eligible for the VAT refund program. The system now exclusively accepts claims for food, health, clothing, housing, and education.

This modification directly impacts the types of receipts beneficiaries can use to reclaim the tax. For instance, expenditures on fuel and mobile phone services can no longer be included in refund requests. However, the maximum monthly refund amount for seniors remains unchanged at $144.60 for 2026.

The change stems from an updated guide for VAT refunds issued on February 13, 2026. The SRI's system now has fewer categories for classifying electronic invoices that support refund applications. The five currently accepted categories are alimentation, health, clothing, housing, and education. This means not all purchases subject to VAT are eligible for a refund, even if made by an eligible individual.

Excluded expenses include transportation, mobility, and communication, effectively removing costs like gasoline and mobile phone services from the refund program. The benefit is intended for individuals aged 65 and over, as well as people with disabilities. To qualify, purchases must meet regulatory conditions and be supported by receipts issued in the beneficiary's name.

Despite the reduction in eligible expense categories, the monthly refund limit for seniors remains at $144.60 in 2026. This limit is calculated based on two unified basic salaries and the current VAT rate. For 2026, the basic salary is $482, and the general VAT rate is 15%. For individuals with disabilities, the refund amount varies depending on their recognized disability percentage and specific regulations.

The SRI reported refunding $184.6 million to seniors and people with disabilities by mid-June 2026, indicating continued demand for the program despite the recent changes. The benefit is personal, requiring receipts to be for the beneficiary's own use or consumption.