VATLive > Blog > Uruguay > Uruguay extends COVID-19 VAT cuts

Uruguay extends COVID-19 VAT cuts

  • Jul 30, 2021 | Avalara

Uruguay has extended the temporary VAT rate cut for the tourism and hospitality sector until September 30, 2021. This means the affected services will continue to benefit from a cut from the standard VAT rate of 22% to 13%.

The rate cut has now been extended twice, originally to April 1 and then June 30. It was originally introduced in November 2020. For the purposes of VAT benefits, services must be paid with credit card, debit card or electronic money instruments, among others, for the VAT reduction to apply.

The cut applies to the following services:

  • Gastronomic services provided by restaurants, bars and other similar establishments

  • Car rental services (without driver)

  • Provision of intermediation services for the lease of immovable property for tourism purposes.

Avalara Author
Avalara Author Avalara
Avalara helps businesses of all sizes get tax compliance right. In partnership with leading ERP, accounting, ecommerce, and other financial management system providers, Avalara delivers cloud-based compliance solutions for various transaction taxes, including sales and use, VAT, excise, communications, and other indirect tax types. Headquartered in Seattle, Avalara has offices across the U.S. and around the world in the U.K., Belgium, Brazil, and India.
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