Uruguay Tax Agency Posts Consultation Clarifying VAT Treatment of Residential Health Services for Senior Citizens

The Uruguayan General Directorate of Taxation Feb. 28 posted online Consultation No. 6687, clarifying the VAT treatment of health services provided in a residential facility for senior citizens. The taxpayer, a foundation, offers geriatric-gerontological assistance, including prevention, cure, recovery, rehabilitation, and daily activities, to the residents of its facility. The taxpayer sought clarification on the VAT treatment for various health services offered to the elderly residents. The consultation clarifies that: 1) a 10 percent VAT rate applies to residents requiring cognitive stimulation, rehabilitation, primary health care, residential internment, and palliative care; 2) a 22 percent VAT rate applies to residents ...