Tax rate by region Uruguay

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The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

Uruguay’s VAT: A Guide for SaaS Providers

SaaS businesses operating in Uruguay must be aware of the country’s Value Added Tax (VAT) system. Implemented in 1983, the VAT in Uruguay functions similarly to other European VAT regimes, with a standard rate of 22.0% applicable to most goods and services, including SaaS. While there is a reduced rate of 10.0% for certain categories, currently no specific digital goods or services fall under this exemption. This means SaaS businesses are generally subject to the standard 22.0% VAT rate on their sales within Uruguay.

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Uruguay

Uruguay adopted a VAT system in 1983 to enhance revenue collection and modernize its tax framework.

Official government link: Dirección General Impositiva

22.00%

E-products and services VAT/Sales tax rate

10.00%

Reduced tax rate

Reduced tax rate product categories

No specific digital goods or services have reduced rate

Exempted product categories

No specific digital goods or services are exempt

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

Registration must be done before the first sale

Online registration possible

Yes

Local representative needed

No

Registration procedure

For registration, complete the forms and attach copies of a passport or other identity document verifying the identity of the person authorized to sign on behalf of the company.

List of digital and electronic services liable for tax

  • Activities of production, distribution and intermediation of films and other kind of audiovisual broadcasts (in which are expressly included those activities performed through internet, technological platforms, software applications or other similar means).
  • Activities of mediation or intermediation performed through digital platforms.

Penalties

Penalties apply for late VAT payments, with amounts ranging from 5% to 20% depending on the payment date. Additionally, interest is charged on overdue tax payments at a variable rate.

Registration threshold

No threshold, non-resident companies must register for VAT

Filing interval

Quarterly

Filing deadline

By the 10th or 15th day of the month following the end of the tax period

E-invoicing requirements

Yes

Record keeping

Documents must be retained for five years or until the tax is settled. In cases of detected fraud, they must be kept for ten years.

How-To Guides: Uruguay SaaS VAT

Step: 1 Threshold

Effective January 1, 2018, non-resident providers of audio-visual services and intermediation services to customers (B2C and B2B) in Uruguay are required to register for and collect VAT, regardless of the sales amount.

On October 1, 2025, Uruguay’s General Directorate of Taxation published Consultation No. 6679, clarifying the VAT treatment of a subscription service offered by a Swiss entity without a permanent establishment in Uruguay. The service, which includes audiovisual content such as recipes and tutorials, was deemed subject to VAT when consumed in Uruguay. Although the income qualifies as business profits taxable in  Switzerland under the 2010 Uruguay-Switzerland tax treaty and is not subject to Uruguay’s non-resident income tax (IRNR), Uruguayan VAT applies due to the nature of the digital content.

Step: 2 Business Registration

Non-residents must register with the Dirección General Impositiva (DGI). There is a specific registration procedure for “non-resident entities providing digital services” that does not necessarily require a physical branch if operating under the simplified regime, though a representative or contact point is often needed.

Step: 3 Obtain TIN

Upon registration, you will be issued a RUT (Registro Único Tributario) number (12 digits), which is used for all tax filings and payments.

Step: 1 Standard VAT Rate

Apply the standard VAT rate of 22%.

Step: 2 Determine if you need to register.

To calculate your tax amount, use the following formula:

 

VAT Amount = Net Price x 22%

Step: 3 Reverse Charge (B2B)

Yes. For sales to corporate taxpayers (B2B), the Reverse Charge Mechanism applies. The foreign supplier does not charge VAT. The local Uruguayan business buyer (who must be a taxpayer) is responsible for withholding and paying the VAT to the DGI.

Step: 1 Selling B2C

You are required to charge and collect 22% VAT on all digital service sales to individuals or non-taxpayers in Uruguay.

Step: 2 Selling B2B

Do not charge VAT if the customer is a registered business taxpayer (RUT holder). The buyer is liable for the tax. You should validate their RUT number.

Step: 3 Invoice Requirements

Non-resident providers under the specific digital services regime are generally exempt from the strict local “CFE” (e-invoicing) standard but must issue a commercial document containing:

 

• Supplier’s Name and RUT (if registered)
• Buyer’s Name and RUT (for B2B)
• Date and Number
• Description of Services
• VAT Amount (or indication that tax is covered/withheld)

Step: 1 Filing Interval

Tax payments are generally made Quarterly.

Step: 2 Filing Deadline

Payments are due by the 10th or 15th of the month following the quarter (e.g., April, July, October, January). Annual returns may also be required depending on the specific entity classification.

Step: 3 Submission

Filings are submitted via the DGI Online Services portal. Payments can often be made in USD or UYU via authorized bank transfers.

Step: 4 Record Keeping

Maintain records for at least 5 years (standard statute of limitations, though 10 years is recommended for commercial books).

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Uruguay’s VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

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