94 of 115 Basic Basket Foods Stay at 0% IVA — Full Breakdown

After a week of confusion over which foods are now taxed, the SRI has issued a clarifying breakdown: 94 out of 115 items in Ecuador's basic food basket remain at 0% IVA. Only 21 items have been reclassified to the full 15% rate.

The clarification matters because the reclassification was announced abruptly and consumers have been uncertain about what is still tax-free. The answer: most of what goes in a traditional Ecuadorian grocery cart is still exempt.

What Stays at 0% IVA (94 Items)

The exempt categories cover the foundation of most households' weekly shopping:

Fresh Dairy

• Fresh natural milk (leche natural fresca) -- whole milk in its basic form
• Pasteurized milk without additives
• Raw cheese (queso fresco sold at markets)
• Plain unsweetened yogurt (some varieties)

Raw Meats and Seafood

• Fresh chicken -- whole and cut
• Fresh beef -- all cuts
• Fresh pork -- all cuts
• Fresh fish -- whole fish and basic fillets
• Fresh seafood -- shrimp, clams, mussels in their raw state
• Eggs -- chicken and quail eggs

Fresh Produce

• All fresh fruits -- no change from before
• All fresh vegetables -- no change
• Fresh herbs -- cilantro, parsley, basil, etc.
• Potatoes in all varieties
• Plantains and bananas
• Tropical fruits -- papaya, mango, pineapple, passion fruit

Grains, Legumes, and Pulses

• Rice -- all varieties, including white and brown
• Dried beans -- black beans, red beans, white beans, kidney beans
• Lentils -- all varieties
• Chickpeas (garbanzos)
• Quinoa -- raw and unprocessed
• Corn -- fresh, dried, and whole kernels
• Barley and oats -- raw
• Wheat flour -- basic, unfortified

Basic Pantry Staples

• Cooking oil -- basic vegetable and sunflower oils
• Salt
• Sugar (in some presentations)
• Panela -- unrefined cane sugar

What Moved to 15% IVA (21 Items)

The reclassified items are all processed or industrially prepared foods:

• Lactose-free milk and specialty dairy
• Fortified/vitamin-enriched milk
• Flavored milk drinks
• Cream (crema de leche)
• Condensed milk
• Industrial packaged bread and pastries
• Cookies and crackers
• Instant noodles
• Pre-cooked and filled pasta
• Sausages and embutidos
• Canned meats
• Pre-marinated/pre-cooked meats
• Processed cereals
• Snack foods and chips
• Canned soups and broths
• Industrial condiments (some ketchups, mayonnaise)
• Jams and preserves
• Flavored yogurts
• Fruit juices with added sugar

The pattern: if a food is in its raw or near-raw state, it is exempt. If it has been industrially processed, fortified, flavored, or pre-prepared, it is taxed.

Practical Grocery Guidance

For residents trying to minimize the tax impact, the strategy is straightforward: buy fresh, buy simple, buy from traditional markets.

Shop at traditional markets (mercados municipales). Mercado 10 de Agosto in Cuenca, Mercado Central in Quito, Mercado Caraguay in Guayaquil, and neighborhood mercados throughout Ecuador sell primarily raw, unprocessed foods at 0% IVA. A full cart of produce, raw meats, and fresh grains from a traditional market incurs virtually no IVA.

Substitute raw for processed where possible. Examples:

| Instead of (15%) | Buy (0%) | |---|---| | Flavored yogurt | Plain yogurt + fresh fruit | | Industrial packaged bread | Fresh bakery bread (gray area, often exempt) | | Pre-marinated chicken | Fresh chicken + own seasoning | | Instant noodles | Rice + lentils | | Breakfast cereal | Oats + fresh fruit | | Sausages | Fresh ground beef/pork | | Flavored milk | Fresh milk + cocoa powder |

Cook from scratch. The tax code now rewards cooking. A household that prepares meals from raw ingredients will pay meaningfully less IVA than one that relies on prepared and packaged foods.

Supermarkets are transparent. Supermaxi, Coral, Gran Aki, and Mi Comisariato clearly mark the IVA rate on shelves and receipts. If an item surprises you with a 15% rate, the shelf label should match.

Context: Why the SRI Clarified

The initial announcement of the reclassification on March 26 created immediate consumer confusion. Social media filled with incorrect information -- people assumed bread was entirely taxed (it is only industrial bread), that all milk was taxed (only processed milk), and that the basic basket had been gutted (only 21 of 115 items moved).

The SRI's follow-up clarification aims to correct the public understanding: the fundamental food basket remains largely tax-exempt. The reclassification targets industrially processed foods, not basic nutrition.

That framing is accurate but incomplete. The 21 items that moved include staples like bread and sausages that many households buy regularly. And the broader trend -- expanding the tax base through reclassification -- is likely to continue.

What This Means for Expats

• Your basic grocery shopping is still mostly tax-free. If you buy fresh produce, raw meats, rice, beans, eggs, and cooking oil, you are paying 0% IVA on nearly everything in your cart
• The impact hits packaged and convenience foods. If you rely on cereal, deli meats, cookies, packaged bread, pre-made meals, and specialty dairy, you will see noticeable increases on your receipts
• Traditional markets are now more attractive. The price advantage of mercados over supermarkets was always real; the tax treatment makes it more pronounced. Weekly market shopping has become a practical money-saver
• Lactose-free and specialty dairy consumers take the biggest hit. These products moved entirely from 0% to 15%. If you rely on them for dietary reasons, factor the increase into your budget
• Restaurant meals are unchanged by this. Prepared foods at restaurants carry IVA regardless of this reclassification. The changes affect grocery purchases specifically
• Keep your receipts and check the math. Some stores may apply the new rates inconsistently in the first few weeks. The SRI circular is the authoritative guide to which items should be taxed

The bottom line: cooking from scratch just got cheaper relative to prepared foods. If you already cook, the impact is small. If you rely heavily on packaged and processed products, expect your grocery bill to rise more noticeably.

Source: Primicias