The Economy and Finance Ministry in Uruguay has issued a new Decree which extends the reduction of the VAT rate in accordance with Law No. 19210.

The new law prescribes that transactions paid via electronic means (such as bank cards) will be taxable at a reduced rate 2% lower than the standard rate. The eligible transactions are those for which invoices are valued up to an amount of 4,000 indexed units (about USD 500).

This new Decree took effect from the 1 January 2017.