importing rules for small biz

I don't know what your history is of Cuenca, but, if you've spent anytime here, you would know that there is a furniture store everywhere you look. Many fine craftsmen, that are able to produce just about anything you want, at a fraction of the cost of even the larger furniture stores here. I don't know if you are specifically targeting furniture, but I think the Import Tax would prohibit any success in that field. Really, custom made here is VERY reasonably priced.
Again, not trying to sound negative, but I really think that would be a losing proposition.
Best in your endeavors,
ZenSPIKE

thanks for the reply, but was using furniture as an example of big merchandise...have since spoken to someone who has an import/export biz in South America and he had specific biz suggestions...
by the way, if the product is something that would not compete with the local market (even lets say plastic furniture), it could be imported and generally the import tax would be recouped in sales tax...just as an FYI
thanks again for your help

skinnysmartmom wrote:

by the way, if the product is something that would not compete with the local market (even lets say plastic furniture), it could be imported and generally the import tax would be recouped in sales tax...just as an FYI
thanks again for your help

I'm interested in business opportunities and am wondering how that would work - so you import something and have to pay an import tax.  Then how is that import tax recouped when a sales tax is paid by the buyer who pays it to you, the importer, who then has to pass that money on to the state, the ones who impose the sales tax?

OsageArcher wrote:

skinnysmartmom wrote:

by the way, if the product is something that would not compete with the local market (even lets say plastic furniture), it could be imported and generally the import tax would be recouped in sales tax...just as an FYI
thanks again for your help

I'm interested in business opportunities and am wondering how that would work - so you import something and have to pay an import tax.  Then how is that import tax recouped when a sales tax is paid by the buyer who pays it to you, the importer, who then has to pass that money on to the state, the ones who impose the sales tax?

According to my research, Ecuador has a 12% value added tax applied to all transactions - both at import and sales at retail.  (There is a 0% rate on food items, certain agricultural items, medical goods, books and government purchases, and some professional services.)  So, as the retailer you would collect the tax at sale and remit to the government.  There also is income tax due from income obtained in Ecuador.

You might want to check out the tax guide for Ecuador at http://www.pkf.com/publications/tax-gui … guide-2014 for more information.

Something else that might be useful in starting a business in Ecuador is a publication of the World Bank entitled: "World Bank Group. 2014. Doing Business Economy Profile 2015 : Ecuador." 

You can download it for free at: https://openknowledge.worldbank.org/handle/10986/21261

In it you will see this comment:  "Globally, Ecuador stands at 165 in the ranking of 189 economies on the ease of starting a business." 

So basically you cannot "recoup" the import tax by the sales tax...didn't think so.