The National Government issued Executive Decree No. 368, through which it announced, as a special measure to promote domestic tourism, that the general VAT rate will be reduced from 15% to 8% for all services classified as tourism activities, in accordance with Article 5 of the Tourism Law. This provision will be in force from Thursday, April 30 through Sunday, May 3, 2026.

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

1. Accommodation;
2. Food, beverages, and entertainment;
3. Travel agencies and tourism intermediation;
4. Tourist transportation;
5. Organization of events, congresses, conventions, meetings, incentives, conferences, fairs, and exhibitions;
6. Convention centers, reception halls, and banquet facilities;
7. Tourist guiding services;
8. Community tourism centers;
9. Theme parks and permanent attractions; and,
10. Spas, thermal baths, and recreational tourism centers.

This is a summary of Executive Decree No. 368 and contains information that we consider relevant; it does not necessarily reflect the opinion of Robalino® and therefore should not be considered as legal advice.

If you would like more information regarding this content, please do not hesitate to contact us at: unidadtributaria@robalinolaw.com