Ecuador - Selling Factors and TechniquesEcuador – Selling Factors
Most U.S. products do not require any changes to comply with regulations applicable to the Ecuadorian market. Some products are subject to technical requirements such as compliance with specific ISO standards, Good Manufacturing Practices (GMP) and conformity assessment certificates. Price competitiveness is an important sales factor. For practical rather than legal reasons, U.S. firms selling high-tech products usually provide training and maintenance support to their distributors and agents. Local distributors frequently expect foreign suppliers to underwrite marketing and promotion costs, as well as sales support and training. Sales materials should be in Spanish.
Under the current invoicing system mandated by Ecuador’s Internal Revenue Service (SRI), a sales invoice must be submitted for every transaction regardless of the amount – even when carrying out a free transfer of title. This obligation applies equally to the provision of professional services of any nature and transactions where the 12 percent value-added tax (VAT/IVA) rate applies. The SRI also requires foreign suppliers to obtain a federal tax number (RUC).