Uruguay's Reduced VAT Rate for Electronic Payment Purchases in Effect

On 1 August 2014, the Uruguay's 2% reduction in VAT for purchases by final consumers using debit cards or other means of electronic payment (excluding credit cards) went into effect. The changes were introduced as part of Uruguay's Financial Inclusion Law as clarified by a decree issued by the Ministry of Finance on 22 July 2014.

In addition to the 2% reduction, temporary reductions are introduced for purchases by final consumers that amount to less than the equivalent of 4,000 indexed units…