The new decree extends the value-added tax (VAT) reduction currently applicable to some operations to the tourism sector. The VAT reduction applies until June 30, 2021.
On May 12, 2021, Uruguay published in the Official Gazette Decree No. 128/021, which was issued by the Executive Power on May 4, 2021 and extends the reduced 13% VAT rate (normally, 22%) to the following operations in the tourism sector:
- 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
- Vehicle rental without driver
- Mediation services in the leasing of real estate for tourism purposes
The VAT reduction applies until June 30, 2021. To benefit from the rate reduction, consumer payments must be done using credit cards, debit cards and electronic money instruments (among other payments).
Source EY
