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January 16, 2024

Uruguay introduces zero VAT rate on hotel-related services to resident tourists for the summer season

  • The new zero Value Added Tax (VAT) rate will apply for hotel-related services provided to resident tourists throughout the summer season.

Uruguay's Law No. 20,239, enacted on 28 December 2023, establishes that lodging-related services rendered to resident tourists will be subject to a 0% VAT rate (treatment that already applies for nonresidents) from 15 December 2023 until 31 March 2024, provided that the following conditions are met:

  • The taxpayer must be registered on the Ministry of Tourism as a hotel, apart hotel, motel, hostel, rural establishment, or similar establishment.
  • The taxpayer's annual income, in the last fiscal year closed prior to the entry into force of this bill, does not exceed 10,000,000 indexed units (approximately US$1,498,000).

Law No. 20,239 was published in the Official Gazette on 11 January 2024 and became effective on the publication date. It can be accessed here (only in Spanish).

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Contact Information

For additional information concerning this Alert, please contact:

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