Ecuador offers VAT refunds to seniors and disabled individuals, with options for in-person, online, and automatic reimbursement.
The Internal Revenue Service (SRI) offers a tax benefit allowing senior citizens (65 years and older) and individuals with disabilities to reclaim the value-added tax (VAT) they pay on essential goods and services. This initiative aims to provide financial relief and support for these populations, ensuring they can recover some of the taxes incurred on their everyday expenses.
Eligibility and Requirements
To qualify for the VAT refund, purchases must be made for personal consumption, and the corresponding invoices must be issued in the name of the beneficiary. The law stipulates that refunds can be requested within a period of up to five years from the date of purchase, giving ample time for eligible individuals to claim their due reimbursements.
The monthly VAT refund is subject to a cap set by the SRI. The maximum refundable amount is equivalent to the value of two basic unified salaries as of January 1st of the corresponding year. Given the VAT increase to 15% in April 2024, senior citizens are now entitled to claim up to $138 per month in refunds.
How to Apply
Eligible individuals have the flexibility to apply for their VAT refunds on a monthly, quarterly, or semi-annual basis. The application process can be completed either in person or through the SRI’s online platform.
In-Person Application
For those preferring to apply in person, the following documents are required:
- Original national ID card.
- A completed VAT refund application form for senior citizens, available for download on the official SRI website (www.sri.gob.ec). To access it, navigate to the ‘Tax Information’ section, select ‘How do I request my tax refund?’ then proceed to ‘VAT Refund’ under the ‘Senior Citizens’ category. Finally, download, print, and fill out the application form.
- Original sales receipts issued in the name of the applicant.
Online Application
For a more convenient option, applicants can complete the process virtually by following these steps:
- Obtain an access code for SRI online services. If not already registered, individuals must visit an SRI office with their national ID to acquire their access credentials. For those who have lost their access code, it can be recovered through the official website.
- Log in to www.sri.gob.ec and select the ‘VAT Refunds for Senior Citizens’ option.
- Choose the relevant electronic sales receipts and submit the request.
- Check the application status after 24 hours using the procedure number provided upon submission.
- Once approved, verify that the refunded amount has been credited to the designated bank account.
Automatic VAT Refunds
To streamline the refund process, SRI also offers an automatic refund option for purchases made at participating retailers. When purchases are made at authorized stores, the refund is automatically processed without requiring a formal application. Some of the major chains participating in this program include:
- Corporación Favorita and its associated stores such as Supermaxi, Juguetón, Akí, and Titán.
- La Bodega de Azogues.
- Mega Santa María.
- Pharmacies including Pharmacys and Cruz Azul.
- Almacenes de Gerardo Ortiz (Coral).
This initiative by SRI simplifies the tax refund process for senior citizens and individuals with disabilities, ensuring they receive the financial benefits they are entitled to while reducing bureaucratic hurdles. With both in-person and online application options, as well as automatic refunds at select retailers, Ecuador’s VAT refund system is designed to be accessible and efficient for eligible individuals.
I been on Sri vat refunds for seniors over a year now nothing has credited to my bank account can you please help me