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02 October 2026

Uruguay extends application of reduced VAT rate for tourism sector until 30 April 2027

  • The Ministry of Economy and Finance has once again extended the value-added tax (VAT) reduction for tourism-related services; Decree No. 235/026 is dated 1 October 2026.
  • This extension is valid through 30 April 2027, for payments made via electronic methods.
 

Through Decree No. 235/026, the Ministry of Economy and Finance, on 1 October 2026, extended the 9% value-added tax (VAT) reduction for certain tourism activities until 30 April 2027, provided that payments 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 April 2026, the Ministry provided a similar extension, valid through 30 September 2026, (For background, see EY Global Tax Alert, Uruguay extends application of reduced VAT rate for tourism sector through 30 April 2026, dated 5 May 2025.)

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 to address issues that arise in the rental of real estate for tourism purposes

The Decree has not yet been published in the Official Gazette and 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

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

Document ID: 2026-2106

 

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