The National Government issued Executive Decree 526, through which it announced, as a special measure to boost domestic tourism, that the general VAT rate will be reduced from 15% to 8% for all services classified as tourism activities, pursuant to Article 5 of the Tourism Law. This provision will be in force from Saturday, October 31 through Tuesday, November 3, 2026.

Article 5 of the Tourism Law considers as tourism activities those carried out by natural persons or legal entities engaged in the remunerated provision of one or more of the following activities registered before the competent authority:

1. Accommodation;
2. Food, beverages and entertainment;
3. Tourism agency services;
4. Tourist transportation;
5. Organizers of events, congresses and conventions, meetings, incentives, conferences, fairs and exhibitions;
6. Convention centers, reception halls and banquet halls;
7. Tour guiding;
8. Community tourism centers;
9. Theme parks and permanent attractions; and,
10. Spas, hot springs and tourist recreation centers.

This is a summary of Executive Decree No. 526; it contains information that we have deemed relevant and does not necessarily reflect the opinion of Robalino®; therefore, it may not be considered as advice rendered.

Should you wish to learn more about the content, please do not hesitate to contact us at unidadtributaria@robalinolaw.com