Which purchases lose their VAT?
Uruguay's standard VAT rate is 22%. The tax office, the DGI, says all goods and services are in principle taxed at the 22% basic rate unless they are exempt or fall under the 10% minimum rate.
The tourist benefit is built on Law 17.934, which lets the government cut VAT on tourism services paid with cards issued abroad. Each season a decree switches the full reduction on. The DGI's summary for the 2025–26 season lists four kinds of spending:
- Food and drink in restaurants, bars, cafés and hotel restaurants, as long as it is not part of the room charge
- Catering for parties and events
- Event services other than catering
- Car hire without a driver
Hotel rooms are handled differently. The Ministry of Tourism's benefits page for non-residents describes zero VAT on hotels and other lodging for non-residents who show foreign identification, all year round. A 2017 Presidency notice explained that because this stay is exempt, the invoice simply carries no VAT, so there is nothing to claim back.
Is the full VAT reduction in force right now?
Not on the date we checked, 23 September 2026. Decree 220/025, published on 30 October 2025, applied the reduction "between 15 November 2025 and 30 April 2026 inclusive", and the Ministry of Tourism's extension notice gives the same end date. We found no decree covering May to November 2026.
For the coming summer, a report by InfoRocha on 10 September 2026 said the Minister of Tourism had announced that the total VAT exemption for non-resident tourists on food service, car hire and events would be extended for the 2027 season. We could not find the decree itself, so treat that as an announcement until the DGI publishes the dates.
How much does it save?
The saving is not 22% of the bill, because the price you see already includes VAT. Decree 279/024, whose conditions the 2025–26 decree reused, sets the discount as 18.03% of the total amount for businesses under the ordinary VAT regime. That is 22 divided by 122.
This table combines the legal rule, the season dates and the payment method to show what you would pay on the same dinner in Montevideo.
| Situation | Card used | Bill of UYU 3,660 at 22% VAT | You pay |
|---|---|---|---|
| Inside a decreed season | Foreign-issued card | Discount of 18.03% (UYU 660) | UYU 3,000 |
| Inside a decreed season | Cash or Uruguayan card | No reduction | UYU 3,660 |
| Outside a decreed season | Any | No reduction | UYU 3,660 |
| Hotel room, any date | Foreign ID shown | Invoiced without VAT | Room rate with no VAT |
For a party of four spending UYU 3,660 on dinner every night of a five-night stay inside the season, the foreign-card discount comes to 5 × 660 = UYU 3,300 across the trip. The same meals paid in cash would cost the full amount.
Conditions that decide whether you get it
The DGI sets three conditions, and missing any one of them means paying full VAT.
- You must be a non-resident individual.
- You must pay the whole amount with a debit or credit card issued abroad, or by an electronic transfer from abroad processed through a Uruguayan acquirer or collection company. Splitting the bill with cash breaks this condition.
- The business must issue a separate invoice marked "CONSUMO FINAL" showing the amount of the reduction.
What to do if the discount is missing
Cash, cards and getting around
Card payment reaches beyond restaurants and hotels. The city government's getting-around guide says most taxis take credit and debit cards, and city buses use the STM card, which gives cheaper fares than cash. If you are arriving by air, our Carrasco Airport to Montevideo guide covers the bus and taxi options.
Tax-free shopping on goods is a separate scheme. The Ministry of Tourism describes year-round refunds on eligible purchases at participating shops, processed at exit points; a 2017 Presidency notice named Carrasco Airport among them. Ask the shop for the tax-free form when you buy.