Uruguay’s Ministry of Finance announced that the nine-percentage-point VAT reduction for certain tourism-related services had been extended until 30 April 2027. The reduced rate applied to qualifying payments made through cards and other electronic money instruments.
Uruguay’s Ministry of Finance ( MoF) has announced that the Executive Branch extended a nine-percentage-point reduction in the VAT rate for certain tourism-related services until 30 April 2027 under Decree No. 235/026, signed by President Yamandú Orsi on 1 October 2026.
The measure reduces VAT from the 22% standard rate to 13% for qualifying transactions. The reduced rate applies when customers pay using credit cards, debit cards, electronic money instruments or similar payment methods.
Services covered
The reduction applies to gastronomic services provided by restaurants, bars, cafes and similar establishments. It also covers such services provided by hotels, inns and hostels, provided they do not include lodging.
Other eligible services include catering for parties and events, vehicle rentals without a driver, and mediation services for the leasing of real estate for tourist purposes.
For taxpayers subject to the small business tax regime, the reduction is calculated by applying a 7.38% discount to the total transaction amount.
The VAT reduction was first introduced on 16 November 2020 in response to COVID-19 and had been extended several times. Decree No. 83/026 had previously extended the measure until 30 September 2026.
The latest extension had been announced during a 26 August 2026 meeting between officials from the Ministry of Economy and Finance and the Ministry of Tourism and representatives of the Uruguayan Chamber of Tourism and the Gastronomic Corporation of Punta del Este.
The Executive Branch said that, under Law No. 17,934, the measure was intended to “continue promoting activity in the tourism sector”.
