On 2 October 2026, the Uruguayan Tax Administration published the updated guidelines for the 9-percentage-point VAT reduction applicable to specific services when paid via electronic means (credit cards, debit cards, electronic money instruments, or analogous methods). This fiscal benefit, established under Law N° 19.210 (Financial Inclusion Law) and regulated by Decree 246/014 and subsequent modifications, aims to incentivize the formalization of the economy and reduce cash usage by lowering the effective VAT rate from 22% to 13% for final consumers. The guide details the exhaustive list of eligible services, which includes restaurant and catering services, hairdressing and beauty treatments, automotive repair and maintenance, private tutoring, and certain professional services such as legal and accounting advice provided to individuals. To qualify, the payment must be processed entirely through approved electronic channels at the moment of service delivery; mixed payments (partial cash) disqualify the transaction from the benefit. Service providers bear the responsibility of applying the reduced rate at the point of sale and ensuring their POS systems are correctly configured. The DGI emphasizes that the benefit is exclusively for final consumers (non-VAT registered individuals); B2B transactions remain subject to the standard 22% rate. The publication includes a downloadable annex with the complete coded list of activities (CIUU codes) and technical specifications for invoicing software integration.
Key Takeaways
- Targeted VAT Rate Reduction: Final consumers enjoy a 9-point VAT discount (22% to 13%) on a defined basket of personal services when paying electronically, directly reducing the final price and encouraging digital payment adoption.
- Strict Eligibility and POS Requirements: Only payments made 100% via approved electronic instruments qualify; merchants must update invoicing systems to automatically apply the reduced rate and segregate these transactions in their VAT returns (Form 2100).
- Exclusion of B2B Transactions: The benefit does not extend to services acquired by VAT-registered businesses, maintaining the standard credit-invoice mechanism for commercial operations and preventing cascading credit distortions.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement