Summary
- Uruguay’s Parliament approved an Accountability Bill containing a VAT exemption for deposits and reimbursements under authorised return schemes for single-use beverage containers.
- The bill creates a VAT recovery mechanism for eligible housing cooperatives in respect of goods and services incorporated directly into construction costs.
- The bill also authorises adjustments to recoverable VAT-credit limitations for collective passenger transport operators, taking account of objective criteria including fleet electrification.
Extended article
Uruguay’s Accountability Bill introduces targeted VAT measures in environmental policy, housing and public transportation. Deposits and reimbursements made under authorised deposit-return schemes for single-use beverage containers will be exempt from VAT. The measure is intended to prevent VAT from applying to the temporary movement of funds associated with returning containers.
Eligible housing cooperatives will be able to recover VAT included in goods and services incorporated directly into construction costs. The recovery mechanism will apply to projects transferred to cooperative members from 1 January 2027 and will be regulated by the Executive Branch. The bill also permits the Executive Branch to modify limitations on recoverable VAT credits for collective passenger transport operators using objective criteria, including the relative share of electric vehicles in the fleet. The bill had been approved by Parliament but had not yet been published in the Official Gazette when reported.
External sources: Read the Uruguay tax alert
Latest Posts in "Uruguay"
- Uruguay Intensifies Tax Inspections on Consumer-Facing Businesses
- Uruguay Extends 9% Reduced VAT Rate for Tourism Transactions Until April 2027
- Uruguay Extends VAT Breaks for Tourist Services Until 2027
- Uruguay Accountability Bill Introduces Targeted Tax Incentives
- Uruguay Tax Authority Updates VAT-Exempt Agricultural Machinery List
