Bustamante & Bustamante
To avoid the exportation of indirect taxes, Article 69(a) of the Internal Tax Regime Law recognizes the right to a refund for value added tax (VAT) paid on the importation and local acquisition of goods and services used for the production of export goods. Based on this legal provision, companies with upstream contracts have claimed from the Internal Revenue Service a refund of the VAT paid on the production of the oil they produce and export.
With dollar as the legal currency in Ecuador, production has to be more competitive. One of the main points to be analyzed for that goal is labor area. Labor Procedure Code has been liberalized as an effort to increase commerce and competition as well as to encourage external investments.