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August 26, 2022
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From September, zero VAT will apply for foreign tourists

Desde setiembre regirá el IVA cero para turistas extranjeros

After the agreement with President Luis Lacalle Pou, the Minister of Tourism, Tabaré Viera, announced that non-resident foreign visitors will have zero-rate value added tax (VAT) for gastronomy and vehicle rental.

The measure, which will be in force from September 1 to April 30, 2023 inclusive, is added to the 10.5% refund for rentals and the 30% discount on fuel.

The Executive Branch announced a series of benefits aimed at promoting foreign tourism in Uruguay, among which is the exemption from VAT on some services related to the sector.

“It is an effort made by the Government to make Uruguay more attractive from an economic point of view,” said Viera, at a press conference, on the afternoon of Tuesday the 23rd, in the Executive Tower, after the ministerial agreement with President Lacalle Pou. .

Non-resident foreign visitors will enjoy a full refund of VAT on gastronomy, catering services, catering for events and car rental. They will also obtain a credit refund of 10.5% of the gross amount of the agreed price, for housing rentals for tourist use.

The measures will take effect on September 1 and will last until April 30, 2023 inclusive. Viera considered that it is “a novelty”, because the benefits that are usually established for the summer were advanced, and thus will be extended for a longer time. These provisions are added to the 30% discount applied to the price of fuel, for those visitors who enter Uruguay in private cars.

Likewise, the minister reported that work is being done to eliminate the online sworn statement request as a condition of entry into national territory, a measure implemented during the COVID-19 pandemic.

Viera added that the aim is to expand the tourist market, with emphasis on Brazil, which represents between 15 and 18% of the tourists who enter Uruguay. For this reason, he informed that the ministry will participate with a stand at the Expointer fair in Rio Grande, at the end of August, seeking to promote Uruguay in all its areas.

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