03 February 2016 Uruguay modifies VAT for certain restaurant services The modification to the VAT is good news for taxpayers in the restaurant industry, as some services are now exempt from VAT. Uruguay has modified (Decree No. 354/015, December 28, 2015) the value added tax (VAT) applicable to some restaurant services. Decree No. 354/015 was published in the Official Gazette on January 8, 2016. Under Decree No. 354/015, restaurant services provided to nonresident persons are considered exports of services for VAT purposes and, therefore, are not taxed if charged to the guest's account. Before this Decree, restaurant services were expressly excluded as exports for VAT purposes. Furthermore, the Decree subjects restaurant services rendered by hotels, apart-hotels and rural tourism places for the purpose of lodging guests to a reduced VAT rate of 10% if the services are charged to the guest's account.
Document ID: 2016-0236 | |||||||||||||||||||
