05 May 2025

Uruguay extends application of reduced VAT rate for tourism sector through 30 April 2026

  • The Ministry of Economy and Finance has once again extended the value-added tax (VAT) reduction for tourism-related services.
  • This one-year extension is valid through 30 April 2026, for payments made via electronic methods.
 

Through Decree No. 93/025 The Ministry of Economy and Finance has extended the 9% value-added tax (VAT) reduction for certain tourism activities, effective 28 April 2025, provided that payment are made via credit card, debit card or e-money payment instrument. This initiative aims to support the tourism sector by providing financial incentives for transactions made through electronic payment methods. In 2024, the Ministry provided a similar extension, valid through 30 April 2025. (For background, see EY Global Tax Alert, Uruguay extends application of reduced VAT rate for tourism sector until 30 April 2025 , dated 27 September 2024.)

The following activities are subject to the reduced VAT rate:

  • Gastronomic services provided by restaurants, bars, canteens, cafeterias and similar establishments
  • Catering services for parties and events
  • Services for parties and events not included in the above
  • Car rental services without a driver
  • Mediation services in the rental of real estate for tourism purposes

Decree No. 93/025 was published in Official Gazette on 28 April 2025. It can be accessed here (only in Spanish).

* * * * * * * * * *
Contact Information

For additional information concerning this Alert, please contact:

EY Uruguay, Montevideo

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

Document ID: 2025-0989