The government of Uruguay is planning to temporarily cut VAT by 4% on purchase by debit cards and by 2% on that for credit cards.
The Economy Minister announced on 5 June 2014 that all debit card and electronic payment purchases with indexed units of up to 40,000 will get a 4 point cut on VAT.
The reduction of VAT on debit cards will be cut to 3 points in the second year and to 2 points from the third year on.
The automatic bill payments imposed on debit cards will get a discount of 2 points with no expiration date. The tax cut on purchases by credit card and automatic bill payments will be 2 points the first year and 1 point the second year and will expire afterwards.
