Analysis of the VAT refund process for vulnerable groups in Ecuador: comprehensive administrative efficiency

Abstract

This study analyses the Value Added Tax refund process for vulnerable groups in Ecuador, older adults and people with disabilities, in order to evaluate its administrative efficiency and propose improvements aimed at simplifying the procedure. Although this benefit is grounded in the Constitution of the Republic and specific organic laws, its practical implementation faces significant barriers related to procedural complexity, prolonged response times, and limited digital access for beneficiaries. Using a descriptive‑analytical mixed‑methods approach, current regulations, institutional channels of the Internal Revenue Service, and official statistical data for the 2021‑2025 period were reviewed. This analysis was complemented by a structured survey administered to 100 selected beneficiaries, from which an effective sample of 52 respondents (n = 52) was obtained, together with semi‑structured interviews with key actors in the process. The results show that 76 % of potential elderly beneficiaries are excluded due to technological barriers, 38.5 % of respondents are unaware of the benefit, and 96.2 % demand a simplification or automation of the system. It is concluded that optimizing the process, through automatic expense validation mechanisms, differentiated invoicing, and targeted communication strategies, would not only reduce the administrative burden and waiting times but also strengthen tax equity and citizen trust in the Ecuadorian tax system.