Update October 31, 2025
Uruguay extends reduced VAT rate for tourism sector through 30 April 2026
- Extension of VAT Reduction: Uruguay’s Ministry of Economy and Finance issued Decree No. 220/025 on October 23, 2025, extending the reduced VAT rate for tourism services until April 30, 2026, specifically for payments made through electronic methods by nonresident individuals.
- Eligible Activities: The reduced VAT applies to various tourism-related services, including gastronomic services (restaurants and cafés), catering for events, certain event services, and car rentals without a driver, incentivizing electronic payment methods.
- Encouragement for Businesses: Tourism businesses are encouraged to promote this tax incentive to customers, highlighting the benefits of using electronic payment methods during this extended period to stimulate activity in the sector.
Source EY
Tourism VAT Rate of 9% Extended to April 2026 for Card and E-Money Payments
The reduced VAT rate of 9% for certain tourism activities is extended through 30 April 2026 Applies when payment is made with a credit or debit card or e-money The rate was originally set to expire on 30 April 2025 The extension aims to support the tourism sector
Source: bdo.global
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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