Uruguay restores full VAT relief for non-resident tourist spending

On 4 November 2026, Uruguay issued Executive Decree 271/026, restoring full reduction of the value-added tax (IVA) for certain purchases by non-resident individuals during the 2026–27 summer season. The Presidency’s official normative register lists the decree on 4 November; the Official Gazette’s advance of documents for 11 November identifies Decree 271/026 and its measure. Article 1 grants the reduction for transactions from 15 November 2026 through 30 April 2027 inclusive. This is a seasonal executive measure under the authority of Law 17.934, article 1, as amended by Law 20.212, article 213—not a permanent change to the standard VAT rate.^[1][2][3]

The decree incorporates the scope and conditions in article 1 of Decree 279/024. The purchaser must be a non-resident natural person. Payment must be made by debit or credit card issued abroad, or by electronic transfer of funds originating abroad, with a resident acquiring or collection entity involved. Covered purchases include restaurant and similar gastronomic services; food services at listed accommodation businesses where the service is separate from lodging; catering for parties and events; other event services; and vehicle rental without a driver. The regime does not make lodging itself a covered restaurant service, nor does it extend to purchases by Uruguayan residents.^[2][3]

For qualifying purchases from establishments under the small-business regime in article 66(E) of Title 4 of the 2023 consolidated tax text, the legal mechanism is an 18.03% discount on the total transaction amount rather than a separately stated VAT reduction. The decree’s use of the 2024 framework also means that the foreign payment instrument and the involvement of a resident payment acquirer or collection entity are substantive eligibility conditions, not optional payment preferences.^[2][3]

Hotels, restaurants, event operators and payment intermediaries serving inbound visitors should distinguish this full seasonal non-resident benefit from the separate nine-percentage-point VAT-rate reduction available for specified electronically paid tourism services under Decree 318/021, extended by Decree 235/026. The latter applies to residents and non-residents on its own terms; it is not the source of this decree’s full reduction. Merchants should configure point-of-sale and invoice controls for the eligible period and retain evidence of purchaser status, service category, foreign payment instrument and acquirer/collection route. Payment administrators should ensure settlement records identify qualifying transactions. No extension beyond 30 April 2027 is provided by Decree 271/026.^[2][3][4]