Uruguay extends application of reduced VAT rate

Local contact

EY Global

18 Feb 2022
Subject Tax Alert
Categories Indirect Tax
Jurisdictions Uruguay

The reduced value-added tax (VAT) rate applicable to certain sales of goods and services is extended to 31 December 2022.

In Decree No. 37/022, Uruguay extended from 31 December 2021 to 31 December 2022, the applicability of the reduced VAT rate on sales of goods and services to consumers who pay for the goods and services with debit cards or similar electronic instruments.

In addition, the Government extended from 31 December 2021 to 31 December 2022 the period during which certain financial entities are exempt from the requirement to withhold VAT on sales of goods and services to (1) taxpayers subject to the single tax regime known as “monotributo” and “monotributo social,” and (2) taxpayers that generate income from business activities that does not exceed 305,000 indexed units (approximately US$35,000). The new exemption period is from 1 January 2016 to 31 December 2022.

Decree No. 37/022 was published in the Official Gazette on 27 January 2022 and went into effect on 31 December 2021.


For additional information with respect to this Alert, please contact the following:

EY Uruguay, Montevideo
  • Martha Roca
  • María Inés Eibe
Ernst & Young LLP (United States), Latin American Business Center, New York
  • Lucas Moreno
  • 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.