Senior citizens can claim VAT refunds through in-person, online, or automatic methods, offering financial relief on essential purchases.
Individuals aged 65 and above are eligible to request refunds on the value-added tax (VAT) they pay for basic goods and services. This benefit is provided by the Internal Revenue Service (SRi) to support senior citizens, offering financial relief for essential expenses.
Senior citizens and individuals with disabilities are considered priority groups for this tax relief program. As per SRi regulations, VAT refund claims can be submitted within five years from the date on the original sales receipt. This allows flexibility for those who may not file immediately.
The maximum monthly refund amount corresponds to two unified basic wages for the year in which the purchase occurred. For 2024, this limit was set at $110.40 for purchases made between January and March, and $138 from April to December due to a VAT rate increase from 12% to 15%. This adjustment ensures that seniors continue to benefit fairly despite changes in tax rates.
There are three ways to apply for a VAT refund: in person, online, or through an automatic refund system, each designed to accommodate different preferences and levels of digital access.
Applying In Person
To submit a VAT refund request in person, you need the following:
- Your original identity card.
- A completed application form for VAT refunds, available for download at www.SRi.gob.ec. Navigate to “Tax Information” on the homepage, select “How do I request the refund of my taxes?”, choose “VAT Refund,” and download the form under “Formats and guides.”
- Original sales receipts issued in your name.
Once all documents are prepared, visit an SRi office to file your application. Assistance is available on-site for any questions about the process, ensuring a smooth experience for applicants.
Applying Online
For electronic invoices, the online process requires:
- An access key for SRi Online. If you don’t have one, visit an SRi office with your ID to obtain it. To recover a lost key, use the SRi website.
- Log in to the website and select the “Adult Older VAT Returns” option.
- Choose the electronic sales receipts and submit your request.
- After submitting, check your application status online using the procedure number within 24 hours.
- The refund will be credited to your bank account upon approval, ensuring a secure and direct transfer of funds.
This method is ideal for those who prefer the convenience of managing their finances digitally without visiting an office.
Automatic Refund Option
The SRi also offers an automatic VAT refund option for purchases made at authorized retailers. With this system, senior citizens or individuals with disabilities don’t have to pay VAT upfront. Participating retailers include Corporación Favorita (Supermaxi, Akí, Títán), Farmacias Cruz Azul, and others.
Steps to use the automatic refund system:
- Visit an authorized store.
- Purchase goods or services for personal use.
- At checkout, provide your unique personal confirmation code.
- Receive the VAT refund directly on your electronic invoice.
This option simplifies the process by eliminating the need for manual claims. Additionally, it ensures immediate benefits, making it especially helpful for individuals who rely on timely financial support.
Additional Information
It’s important to note that the VAT refund program reflects the government’s commitment to supporting senior citizens. By providing flexible application methods and collaborating with trusted retailers, the SRi aims to make this benefit accessible to all eligible individuals. For further assistance, contact your local SRi office or explore detailed guides available on their website.
Under the Automatic Refund Option, you wrote: “At checkout, provide your unique personal confirmation code.”
Is this a code one gets from SRI or ?