Uruguay published Decree No. 93/025 on 28 April 2025, extending the temporary value-added tax (VAT) reduction for certain tourism-related services until 30 April 2026. The measure continues the nine percentage point cut from the standard 22% VAT rate, resulting in a reduced rate of 13%.
The reduced rate applies to gastronomic services provided by restaurants, cafes, bars, and similar establishments, as well as by hotels and other lodging providers—provided the service excludes overnight accommodation. It also covers catering for events, car rentals without drivers, and mediation services for leasing real estate for tourist use.
For taxpayers under the small business tax regime, the benefit is provided as a fixed 7.38% discount on the total transaction amount. To qualify for the VAT reduction, payments must be made using electronic methods such as credit or debit cards or similar instruments.
