Tourist IVA refund: Tax Free and the electronic-payment reduction

If you visit Uruguay —or host visitors— it's worth knowing two IVA benefits designed for tourism. One refunds part of the IVA on your goods purchases; the other reduces the IVA on certain services when you pay by card. Here's how to use them.

Tax Free: 80% of the IVA on your purchases

The Tax Free regime targets goods purchases by non-resident tourists:

Per the DGI:

«Se establece un régimen de devolución del 80% del IVA incluido en las adquisiciones de prendas de vestir, artículos de cuero o punto, alimentos, bebidas o artesanías, de origen nacional o extranjero realizadas por turistas no residentes en el país, siempre que tales bienes estén destinados a ser utilizados o consumidos en el exterior de la República.»

In English: A regime is established refunding 80% of the IVA included in purchases of clothing, leather or knit articles, food, drinks or crafts, of national or foreign origin, made by non-resident tourists, provided such goods are to be used or consumed outside the Republic.

How it's refunded (note: credit card, not debit)

The detail that surprises many: the refund is made by credit card (issued abroad, in an individual's name), not debit, and there's a minimum per invoice.

On the refund:

«Las compras se pueden realizar en efectivo o con tarjeta de crédito. Para el caso de compras con tarjeta de crédito se requerirá que el titular de la tarjeta de crédito sea una persona física y la misma haya sido emitida en el exterior. La devolución procede únicamente para compras cuyo importe total por factura supere $ 600.»

In English: Purchases can be made in cash or by credit card. For credit-card purchases, the cardholder must be an individual and the card issued abroad. The refund applies only to purchases whose total per invoice exceeds $600.

The electronic-payment IVA reduction

Apart from Tax Free (which is on goods), there's a reduction of IVA points on certain tourist services —like gastronomy, vehicle rental and others— when paid by electronic means. The number of reduction points is set by rule and updated, so check the current value before you travel:

Who uses which

Tax Free is for non-resident tourists who take the goods abroad. The electronic-payment reduction benefits whoever pays certain services by card (residents and non-residents, per the current rule). If you run a gastronomy or hotel business, it's also useful to know your clients access that reduction by paying with a card.

At a glance

In short: Uruguay refunds 80% of the IVA on certain purchases to non-resident tourists (via credit card) and reduces the IVA on several services paid by electronic means. Verify the requirements and current points with the DGI before traveling.