Uruguay

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The Standard Rate

The standard VAT rate in Uruguay in 2024 is 22%.

VAT Reduced rate

10% Certain products and services are eligible for a special reduced rate, for example, certain food (bread, fish, meat, oils, fruits, sugar, coffee etc.), medications and pharmaceuticals, hotel accommodation, tourist packages, health-related services.

The Standard Rate

The standard VAT rate in Uruguay in 2024 is 22%.
VAT Standard rate 22% VAT Reduced rate 10% Thresholds -
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Threshold

Registration is mandatory from the first delivery, with no threshold exceptions.

Deductible VAT

VAT might be deductible on the following transactions:
  • Export of goods
  • Import of goods

Registration procedure

For registration purposes, forms must be filled out and copies of passport or other document certifying the identity of the person authorized to sign on behalf of the company must be attached.

Tax representative

There is no need for a local fiscal agent in Uruguay if the services are taxable. However, there is an obligation to declare one address for communications with the Tax Office.

VAT Filing and payment

Uruguay’s VAT returns are generally submitted monthly for medium and big taxpayers. The deadline for all VAT returns is the month following the month in which the transactions took place. The deadline is published at the beginning of each year by tax authorities.

Penalties

The penalty for late registration established by the tax authority is UYU770. Penalties are imposed for late VAT payments. The amount of the penalty depends on the date of payment and can range from 5% to 20%. Interest is also charged on late payments of tax at a rate that varies.

Keeping records

The documents must be kept for five years or until the tax is prescribed. If fraud is detected, it must be stored for ten years.

Threshold

There is no threshold; registration is required from the first delivery.

E-services list

  •  Audiovisual services directly provided from abroad by electronic means to entities or individuals located in Uruguay;
  • Fees for the mediation or intermediation by electronic means between the supply and the demand of services when one or both parties of the core service are located in Uruguay.

Pieces of evidence

To obtain an Uruguayan IP address, the company needs to physically be located in Uruguay. The person or entity registering the account must have their billing address in Uruguay or choose to use a credit card that can be managed by an Uruguayan financial institution.

Registration procedure

For registration purposes, forms must be filled out and copies of passport or other document certifying the identity of the person authorized to sign on behalf of the company must be attached.

Tax representative

There is no need for a local fiscal agent in Uruguay if the services are taxable. However, there is an obligation to declare one address to be used for communications with the Tax Office.

VAT Filing and payment date

Uruguay’s VAT returns are generally submitted monthly for medium and big taxpayers. The deadline for all VAT returns is the month following the month in which the transactions took place. The deadline is published at the beginning of each year by tax authorities.

Penalties

The penalty for late registration established by the tax authority is UYU770. Penalties are imposed for late VAT payments. The amount of the penalty depends on the date of payment and can range from 5% to 20%. Interest is also charged on late payments of tax at a rate that varies.

Keeping records

The documents must be kept for five years or until the tax is prescribed. If fraud is detected, it must be stored for ten years.
October 2, 2024 207
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