Uruguay Extends VAT Rate Reduction for Tourism Sector

Uruguay has published Decree No. 271/023, which extends the temporary reduction in the VAT rate by 9 percentage points on certain activities/operations in the tourism sector (i.e., a reduced VAT rate of 13% considering the 22% standard rate). The reduction was originally provided from 16 November 2020 in response to COVID-19 and subsequently extended multiple times. Previously extended to 30 September 2023 by Decree No. 122/023, the VAT reduction is now extended until 30 April 2024.

The VAT…