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September 18, 2023

Uruguay extends VAT rate-reduction period for tourism sector

  • The Uruguayan government continues to promote the tourism sector to improve its competitiveness in the context of the regional situation.
  • A decree establishing benefits in certain tourist operations paid through electronic payment methods will now apply until 30 April 2024.

In Decree 271/023, the Uruguay 's Executive Power extended the end date for the period during which a reduced value-added tax (VAT) rate applies (13% rather than 22%) from 30 September 2023 to 30 April 2024. For more information, please see previous EY Global Tax Alerts: Uruguay extends reduced 13% value-added tax rate to operations in the tourism sector, dated 23 May 2021, and Uruguay extends reduced VAT rate for tourism sector, dated 26 May 2022.

The Decree was published in the Official Gazette on 8 September 2023 and is in effect as of that date. Access the full text of the decree here (only in Spanish).


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

Published by NTD's Tax Technical Knowledge Services group; Carolyn Wright, legal editor