Category Archives: Ecuadorian Government

Receipts, Taxes and Cuenca’s Clausurado Culture

Ecuadorian business closed by the SRI

The CLAUSURADO sign has confused many new expats in Cuenca.  Put in place by the SRI – Ecuador’s equivalent of the IRS – it marks a business that has forgotten one of Ecuador’s many business accounting laws.

The issue is often receipts.  In Cuenca there are two types of receipts.   Generic receipts are called “consumidor final” or “nota de venta” receipts.  Formal tax receipts, known as “facturas,” are the other type, and these require you to report your name, address, phone number, and passport / ID number.  If you are a business entity expensing a purchase in Ecuador, you need to have a factura matched to your RUC (pronounced rook) which is a part of your company’s incorporation paperwork.  For most everything and everyone else, a nota de venta is fine.  As an expat, your receipt is essentially just a proof of purchase, and consumidor final is what you will get for almost everything you buy.

Coldwell Banker of Cuenca Clausurado for tax code violations

Coldwell Banker of Cuenca Clausurado for tax code violations

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Ecuador’s New Hot Water Challenge

President Correa has sparked a new debate over one of the most basic creature comforts:  hot water.  Currently, the state subsidizes the price of propane gas tanks throughout the country, which are commonly used as cooking fuel and as the fuel for hot water heaters in most homes.  Declaring that state subsidies were meant only to support cooking uses, Correa has mandated that no more gas hot water heaters are to be sold or used in the country.

Unfortunately, the mandate was put in without providing an alternative to the gas hot water heaters (calefones).  As a result, Correa is being heaped with abuse by social commentators and heavily mocked on Twitter by Ecuadorians who have no interest in a cold shower (http://64.59.73.51/negocios/calefon-Correa-Twitter-Facebok.aspx).  Discussions of the issue freely admit that Ecuador has some financial and social challenges to overcome, but most deny that taking away the country’s hot showers is any kind of answer.

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