Uruguay introduces zero VAT rate on hotel-related services to resident tourists for the summer season

Local contact

EY Global

16 Jan 2024
Subject Tax Alert
Categories Corporate Tax
Jurisdictions Uruguay
  • The new zero Value Added Tax (VAT) rate will apply for hotel-related services provided to resident tourists throughout the summer season.

Uruguay's Law No. 20,239, enacted on 28 December 2023, establishes that lodging-related services rendered to resident tourists will be subject to a 0% VAT rate (treatment that already applies for nonresidents) from 15 December 2023 until 31 March 2024, provided that the following conditions are met:

  • The taxpayer must be registered on the Ministry of Tourism as a hotel, apart hotel, motel, hostel, rural establishment, or similar establishment.
  • The taxpayer's annual income, in the last fiscal year closed prior to the entry into force of this bill, does not exceed 10,000,000 indexed units (approximately US$1,498,000).

Law No. 20,239 was published in the Official Gazette on 11 January 2024 and became effective on the publication date. It can be accessed here (only in Spanish).


Contact Information

For additional information concerning this Alert, please contact:

EY Uruguay, Montevideo
  • Rodrigo Barrios
  • María Inés Eibe
  • Piero de los Santos
  • Lucia Giagnacovo
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

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor

For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.