February 17, 2022
Uruguay extends application of reduced VAT rate
The reduced value-added tax (VAT) rate applicable to certain sale of goods and services is extended to December 31, 2022.
In Decree No. 37/022, Uruguay extended from December 31, 2021 to December 31, 2022, the applicability of the reduced VAT rate on sales of goods and services to consumers who pay for the goods and services with debit cards or similar electronic instruments.
In addition, the Government extended from December 31, 2021 to December 31, 2022 the period during which certain financial entities are exempt from the requirement to withhold VAT on sales of goods and services to (1) taxpayers subject to the single tax regime known as "monotributo" and "monotributo social," and (2) taxpayers that generate income from business activities that does not exceed 305,000 indexed units (approximately USD 35,000). The new exemption period is from January 1, 2016 to December 31, 2022.
Decree No. 37/022 was published in the Official Gazette on January 27, 2022 and went into effect on December 31, 2021.