Uruguay reintroduces temporary VAT cut for foreign tourists from 15 November 2025 to 30 April 2026.
The Ministry of Economy and Finance and the Ministry of Tourism issued a joint decree on 23 October 2025, announcing the reintroduction of a significant tax benefit for foreign tourists.
The measure provides for a reduction of the Value Added Tax (IVA) rate for specified operations. The policy seeks to boost the upcoming tourist season and will be effective starting 15 November 2025.
The decree confirms that the reduction will apply to operations covered under Article 1 of the previous Decree N° 279/024. Legally, the Executive Power has the authority to reduce the totality of the IVA on acquisitions, provided these purchases are made by physical persons who are not residents in the national territory.
The newly approved benefit is scheduled to run from 15 November 2025, through 30 April 2026, inclusive. This timeline directly follows a similar benefit period established by Decree N° 279/024, which had previously concluded on 30 April 2025.
The authority to implement this measure is granted to the Executive Power under Article 1 of Law N° 17.934, as modified by Article 213 of Law N° 20.212.
The measure, signed by the President of the Republic, ensures that the tax benefit is formally available for the peak tourist travel months.
Earlier, Uruguay extended the 13% reduced VAT rate on tourism services until April 2026.
