Uruguay’s Ministry of Economy and Finance has extended the 9% VAT reduction for certain tourism operations until 30 April 2025, provided that the payment is made using electronic payment methods such as credit cards, debit cards or e-money payment systems, announced in Decree No. 256/024.
Decree No. 256/024 was published in the Official Gazette on 23 September 2024 and has been in effect since its publishing.
This initiative seeks to bolster the tourism sector by offering financial incentives for transactions conducted through electronic payment methods.
Earlier, Decree No. 318/021 established a 9% reduction of the VAT rate from 22% to 13%, which was applicable until 30 April 2023. This reduction was extended until 30 September 2024 through Decree No. 106/024.
The reduced VAT rate applies to various activities, including gastronomic services from restaurants and similar establishments, catering for events, car rentals without drivers, and mediation services for tourism-related real estate rentals.
