Uruguay extends VAT reduction and tax credit on short-term rentals for tourism sector

Local contact

EY Global

7 Sep 2022
Subject Tax Alert
Categories Indirect Tax
Jurisdictions Uruguay
  • Uruguay’s Executive has extended tax benefits for the tourism sector, including a Value-Added Tax (VAT) reduction and a tax credit from 1 September 2022 to 30 April 2023.

Pursuant to the Uruguayan Government’s Decree 262/022, a VAT rate reduction applies on the following activities:

  • Gastronomic services provided by restaurants, bars and other similar establishments

  • Catering services for parties and events

  • Services for parties and events not included in the above

  • Car rental services (without driver).

In addition, a 10.5% deduction is granted on the gross price agreed for the temporary assignment of a real estate property for tourism purposes, for assignments that do not exceed a period of four months, paid to a resident real estate manager.

Both benefits will be applicable to payments made with credit or debit cards issued abroad by nonresident individuals.

Decree 262/022 (pdf), was published in the Official Gazette on 29 August 2022.


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
  • Pablo Wejcman
  • Enrique Perez Grovas
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.