Uruguay Extends VAT Exemption for Tourism Services for Non-Residents
Uruguay's Executive Power has renewed a temporary 100% VAT rate reduction, effectively an exemption, on certain tourism services provided to non-resident individuals. Issued via Decree E/527, this measure covers operations conducted from November 15, 2026, through April 30, 2027. This initiative aims to stimulate the tourism sector by making Uruguay a more attractive destination for international visitors. This marks another extension of a policy frequently utilized by Uruguay to support its tourism industry. Businesses in the tourism sector, including hotels, restaurants, and tour operators, that cater to non-resident clients will need to ensure their invoicing and tax reporting systems reflect this continued exemption for the specified period. It provides a competitive advantage by reducing the effective cost for eligible services.
- Tourism businesses in Uruguay catering to non-residents should continue applying the 100% VAT exemption on eligible services.
- The renewed exemption is temporary, covering transactions from November 15, 2026, to April 30, 2027.
- Companies should ensure their billing and compliance processes are updated to reflect this extended VAT relief.