Uruguay extends reduced 13% value-added tax rate to operations in the tourism sector

Local contact

EY Global

24 May 2021
Subject Tax Alert
Categories Indirect Tax
Jurisdictions Uruguay

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:

  1. 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

  2. Vehicle rental without driver

  3. 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.