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07 September 2022

Uruguay extends VAT reduction and tax credit on short-term rentals for tourism sector

  • Uruguay's Executive has extended tax benefits for the tourism sector, including a Value-Added Tax (VAT) reduction and a tax credit from 1 September 2022 to 30 April 2023.

Pursuant to the Uruguayan Government's Decree 262/022, a VAT rate reduction applies on the following activities:

  • Gastronomic services provided by restaurants, bars and other similar establishments
  • Catering services for parties and events
  • Services for parties and events not included in the above
  • Car rental services (without driver).

In addition, a 10.5% deduction is granted on the gross price agreed for the temporary assignment of a real estate property for tourism purposes, for assignments that do not exceed a period of four months, paid to a resident real estate manager.

Both benefits will be applicable to payments made with credit or debit cards issued abroad by nonresident individuals.

Decree 262/022, was published in the Official Gazette on 29 August 2022.

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For additional information with respect to this Alert, please contact the following:

EY Uruguay, Montevideo

Ernst & Young LLP (United States), Latin American Business Center, New York

Ernst & Young LLP (United Kingdom), Latin American Business Center, London

Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific

Document ID: 2022-1344

 

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