Information for foreign tourists: How is VAT deducted?

The benefits in tourist services are noted in this season, especially if we take into account the situation of neighboring countries. On the one hand: Brazil, ending a new electoral period with important changes in this aspect, and on the other, Argentina, presenting a devaluation in its currency as well as the increase of economic uncertainty, in a year also electoral.

Given the conditions, Uruguay opted again to implement the total VAT refund, thus helping to reduce costs in the payment of services.

What is it about? The VAT has a value of 22% of the cost, but in the case of non-resident tourists, this percentage must be returned to them. This regulation is in force since October of 2018 and is applied when paying with "credit or debit card issued in their countries of origin".

What are the services it covers?

We have five different groups:

1) Gastronomic services, when they are provided by restaurants, bars, canteens, coffee shops, tea rooms and the like, or by hotels, motels, apart hotels, inns, tourist stays, country hotels, tourist farms, country inns, country houses and camping hostels, provided that said benefits do not integrate the concept of lodging.

2) Catering services for the realization of parties and events.

3) Services for parties and events, not included in the previous paragraph.

4) Leases of vehicles without driver.

5) Mediation services in the lease of real estate with tourist destination.

The information previously listed can be consulted on the Ministry of Tourism website Click here, where other benefits will also be detailed, such as: The partial refund of the rental price of real estate (with tourist destination), Tax Free Regime for attached products, as well as Zero VAT in Hotels.

How is the refund applied?

The same is made by the card after having made the payment. In the specific example of hotel accommodation, non-resident tourists who present their identity document (issued abroad) will benefit from the tax discount -as mentioned- under the ZERO VAT policy. "Being exonerated, this consumption is invoiced without VAT, therefore the tax is not charged, not generating a refund."

In the case of renting lodgings in registered real estate, the refund is 10.5% and is made through the credit or debit card of the foreign country.

Material generated from the information of the foreign site Click here, with contributions obtained from the page "Non-resident tourists" of the Ministry of Tourism from Uruguay: Click here


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