globaltaxnews.ey.comSign up for tax alert emailsPrintDownload

07 September 2022

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

  • 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, 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 | martha.roca@uy.ey.com

  • María Inés Eibe | ines.eibe@uy.ey.com

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

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

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

    Document ID: 2022-5855

     
     

    The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

     

    Copyright © 2025, Ernst & Young LLP.

     

    All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

     

    Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

     

    "EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

     

    Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

     


    Cookie Settings

    This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


    Yes, I accept         Find out more