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May 24, 2021

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

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

Ernst & Young LLP (United States), Latin American Business Center, New York

Ernst & Young Abogados, Latin America Business Center, Madrid

Ernst & Young LLP (United Kingdom), Latin American Business Center, London

Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific


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