Comparative digital taxation: effectiveness of vat models applicable to sports betting platforms in Spain and Ecuador (2018–2024)

Abstract

This article comparatively examines the application of Value Added Tax (VAT) to digital sports betting platforms in Spain and Ecuador, identifying similarities, differences, and lessons to improve the Ecuadorian regulatory framework. Methodologically, a documentary and comparative analysis was conducted on the current legislation, regulations, and administrative resolutions in both countries. Key thematic axes such as VAT territoriality, the definition of the taxable person, the determination of the tax base, and the mechanisms for collection and oversight were examined. The results reveal that Spain has a robust legal framework aligned with the European Union, enabling significant VAT collection on digital services. Although Ecuador has introduced important reforms, it faces challenges in effective implementation, especially with non-resident providers. The study highlights the need to adapt fiscal principles to the digital economy, strengthen international cooperation, and promote tax education. For Ecuador, a simplified regime for small digital providers, enhanced international cooperation, and the implementation of an ISP-withholding VAT system via banks and card issuers are proposed. In conclusion, the importance of modernizing tax systems to ensure fair and efficient revenue collection thereby contributing to economic and social development is underscored.