USGC: Ecuador removes VAT on DDGS
Summary
On Feb. 2, 2023, the National Customs Service of Ecuador (SENAE) officially ruled in favor of the domestic feed industry’s request for a value added tax (VAT) exemption for distillers dried grains with solubles (DDGS). In the letter, the governmental entity confirmed imports of DDGS for animal feed use may enter the country at a zero percent VAT. Their engagement was key for this final result that we applaud today and that benefits the feed, poultry and livestock producers in Ecuador as they will have access to this nutrient source with the same conditions as other ingredients for animal feed,” said Ana Ballesteros, USGC marketing director for the Latin America region. In April 2021, the Ecuadorian Ministry of Production issued a favorable technical report to support the industry’s request and notified the customs and taxes agency (SRI) about it so they could proceed to eliminate the VAT on DDGS. In the official letter from SENAE, they confirmed the SRI’s pending concept and DDGS are now exempt from VAT.