Uruguay has renewed the temporary value-added tax (VAT) exemption on selected tourism services for non-resident individuals, running from 15 November 2026 to 30 April 2027 inclusive.
Uruguay’s Executive Power has reinstated the temporary VAT exemption, a 100% rate reduction, on certain tourism services supplied to non-resident individuals. Decree E/527 was issued in Montevideo on 4 November 2026 by the Ministry of Economy and Finance and the Ministry of Tourism. It covers operations carried out from 15 November 2026 to 30 April 2027 inclusive, making it the third consecutive season of the measure.
Payment condition
The exemption is available only where the services are paid for by debit or credit cards issued abroad, or by electronic funds transfer from abroad.
Services covered
The exemption applies to:
- gastronomic services provided by restaurants, bars, cafes and similar establishments, or by hotels, inns, hostels and the like, provided the services do not include lodging
- catering services for parties and events
- other services for parties and events
- vehicle rentals without a driver
Small business tax regime
For taxpayers subject to the small business tax regime, the exemption is determined by applying a discount of 18.03% on the total transaction amount.
Legal basis
The decree rests on Article 1 of Law No 17.934 of 26 December 2005, as reworded by Article 213 of Law No 20.212 of 6 November 2023. It also refers to Decree No 279/024 of 23 October 2024 and Decree No 220/025 of 23 October 2025.
Under Article 1 of the decree, the VAT rate reduction is granted to the operations covered by Article 1 of Decree No 279/024 that take place within the stated period. It applies “in the form and conditions” set by that decree. The decree is signed by President Yamandú Orsi, Gabriel Oddone for the Ministry of Economy and Finance and Pablo Menoni for the Ministry of Tourism.
The decree does not itself state the reduced rate, the type of operations covered or the conditions for claiming the benefit. It incorporates them by reference to Decree No 279/024, which must be checked for the details.
Earlier seasons
The exemption was first provided from 15 November 2024 to 30 April 2025 under Decree No 279/024. It was reinstated from 15 November 2025 to 30 April 2026, and now returns for a third season.
Related VAT reduction
The exemption is similar to a separate VAT reduction for certain tourism services, available regardless of a customer’s residence, which was most recently extended to 30 April 2027.
Businesses serving non-resident individuals, along with their advisers, should review Decree No. 279/024 for the applicable conditions before applying the exemption to transactions from 15 November 2026.
