The new decree extends the value-added tax (VAT) reduction currently applicable to some operations to the tourism sector. The VAT reduction applies until 30 June 2021.
On 12 May 2021, Uruguay published, in the Official Gazette, Decree No. 128/021, which was issued by the Executive Power on 4 May 2021 and extends the reduced 13% VAT rate (normally, 22%) to the following operations in the tourism sector:
Food and beverage services, when provided by restaurants, bars, canteens, cafes, tea rooms, hotels, motels, etc., as long as these services are not related to lodging
Vehicle rental without driver
Mediation services in the leasing of real estate for tourism purposes
The VAT reduction applies until 30 June 2021. To benefit from the rate reduction, consumer payments must be done using credit cards, debit cards and electronic money instruments (among other payments).
For additional information with respect to this Alert, please contact the following:
EY Uruguay, Montevideo
Martha Roca
María Inés Eibe
Nadine Bruck
Ernst & Young LLP (United States), Latin American Business Center, New York
- Ana Mingramm
- Enrique Perez Grovas
- Pablo Wejcman
Ernst & Young Abogados, Latin America Business Center, Madrid
- Jaime Vargas
Ernst & Young LLP (United Kingdom), Latin American Business Center, London
- Lourdes Libreros
Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific
- Raul Moreno, Tokyo
- Luis Coronado, Singapore
For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.
