Uruguay IVA at a glance
| Standard rate | 22% — applies to most goods and services under Título 10 of the Texto Ordenado. One of the highest standard VAT rates in Latin America. |
| Reduced rate | 10% — applies to specified categories including certain basic food items, medicines, hotel services for non-resident tourists, and qualifying transportation |
| Zero-rated supplies | 0% — exports of goods, exported services consumed outside Uruguay, supplies to Free Trade Zones (Zonas Francas) |
| Exempt supplies | Sale of immovable property, residential rent, education, healthcare from approved providers, certain financial services, religious activities |
| Tax architecture | Single national IVA administered by DGI (Dirección General Impositiva) under the Ministry of Economy and Finance. |
| Domestic registration | Mandatory at commencement of taxable activity with DGI RUT registration. Monotributo BPS / IMESI simplified frameworks for smaller taxpayers. |
| Foreign digital services regime | Operational since 1 January 2018 under Law 19.535 (Article 81). 22% IVA on B2C cross-border digital services. Non-resident vendors register through DGI or operate under alternative withholding via Uruguayan credit card processors. |
| Tax authority | Dirección General Impositiva (DGI) — dgi.gub.uy. Administers IVA, IRAE income tax, social security contributions. |
| Filing | Monthly IVA return through DGI Online Services. |
| Electronic invoicing | CFE (Comprobantes Fiscales Electrónicos) progressively mandatory through DGI. |
| Late-submission fine | Specific fines under the Código Tributario with interest on outstanding tax. |
| Late-payment interest | DGI-published rates. |
| Under-reporting fine | Up to 100% of underpaid IVA depending on culpability; higher for fraud. |
| Records retention | 10 years from date of relevant tax filing. |
| Currency | Uruguayan Peso (UYU). USD ≈ 42 UYU. |
| Statute | Texto Ordenado 1996 Título 10 (IVA). Law 19.535 (foreign digital services, 2018). DGI Resolutions. |
Do I need to comply? — 60-second check
The day your taxable activity reaches the relevant threshold — or, for an overseas vendor providing digital services to Uruguayan consumers, the day you commence supplies — that’s the day the DGI clock starts. Uruguay introduced the foreign digital services framework on 1 January 2018 under Law 19.535 — one of the earliest cross-border digital services regimes in Latin America. The standard rate is 22%, among the highest in the region.
Two minutes of work here saves you twenty minutes of reading. Walk the check; jump to the persona track it lands you in:
- Uruguayan-resident business? RUT registration mandatory from commencement. Monotributo / IMESI simplified frameworks for smaller taxpayers. Local Uruguayan Business track.
- Overseas business supplying digital services to Uruguayan consumers? Foreign SaaS / Digital Services Seller track. Law 19.535 framework — direct DGI enrolment or alternative credit card processor withholding.
- Overseas business shipping physical goods to Uruguayan consumers — Mercado Libre Uruguay, your own store? Foreign E-commerce Seller track. Import IVA at 22% applies at customs.
- Overseas business importing goods into Uruguay? Foreign Importer track. Import IVA at 22% plus Customs Duty under Mercosur Common External Tariff. Zona Franca framework provides preferential treatment.
Two contextual points. First: Uruguay’s Law 19.535 framework (operational since January 2018) is among the earliest LatAm cross-border digital services regimes — alongside Argentina (also 2018). Second: at 22%, Uruguay’s standard VAT rate is among the highest in Latin America — pricing and recovery economics need to reflect this.
Quick-jump to your persona
- Foreign SaaS / Digital Services Seller into Uruguay
- Foreign E-commerce Seller into Uruguay
- Foreign Importer / Physical Goods Seller
- Local Uruguayan Business
Foreign SaaS / Digital Services Seller into Uruguay
Whether Uruguayan IVA applies to your subscription comes down to one rule: place of supply. For B2C electronic services to Uruguayan consumers, the place of supply is Uruguay under Law 19.535 (effective 1 January 2018), and the obligation crystallises on first supply. The 22% rate applies. Non-resident vendors have two operational paths: direct DGI enrolment with 22% IVA collection and monthly returns, or operating under the alternative withholding mechanism through Uruguayan credit card processors and payment intermediaries.
Are your Uruguayan sales actually in Uruguay’s tax base?
Place of supply for cross-border digital services follows the recipient’s location. Law 19.535 and DGI guidance set out indicators: customer billing address, payment instrument issuance country, IP address, telephone country code.
Take Beira-Mar Cosméticos Lda, a Portuguese cosmetics brand with EUR 12 million revenue globally. Beira-Mar operates a B2C subscription content platform alongside its physical products — a beauty-routine subscription sold to consumers across Latin America. Annual Uruguayan B2C subscription revenue reached USD 280,000 in 2025. Beira-Mar enrolled with DGI under Law 19.535 and applies 22% IVA on Uruguayan B2C subscriptions, submitting monthly returns through DGI Online Services.
Trigger event → statutory deadline (the DGI timeline)
Three operational triggers.
The Law 19.535 direct enrolment trigger applies on cross-border digital services to Uruguayan B2C consumers.
The alternative withholding trigger applies via Uruguayan credit card processors — automatic 22% withholding on cross-border payments.
The B2B imported-services trigger applies for B2B supplies to RUT-registered Uruguayan business customers (self-assessment on monthly return).
The registration walk-through
Direct DGI enrolment through DGI Online Services. Operational steps: apply for foreign supplier registration, receive identifier, designate Uruguayan tax representative (recommended), configure billing for 22% IVA.
What you charge, and on what
22% IVA on B2C cross-border digital services. For B2B supplies to RUT-registered Uruguayan businesses, reverse-charge mechanism applies.
BrightLearn Inc. selling USD 79/month subscriptions to Montevideo consumer: USD 79 + 22% IVA = USD 96.38.
What a Uruguay invoice must say
Foreign supplier invoices include supplier identifier, customer identification, invoice details, IVA amount (22%) separately stated. CFE format applies to Uruguayan domestic taxpayers; cross-border vendors operate under simplified format.
Submitting and paying DGI
Foreign digital service providers submit monthly returns through DGI Online Services.
What this actually costs
- Uruguayan tax representative retainer: USD 4,000–13,000 per year.
- Monthly return preparation: USD 800–2,200 per submission.
- Billing-platform configuration for 22% IVA: USD 3,000–10,000.
- Annual reasonableness review: USD 2,000–6,000.
Three repeat failures we keep seeing — and why
Three patterns recur.
The first: pricing for Uruguay’s 22% rate. Cumulative effective gross-up exceeds most LatAm jurisdictions; recovery models built on lower regional rates require adjustment.
The second: misjudging the choice between direct enrolment and alternative withholding. The operational choice depends on revenue scale and customer mix.
The third: under-investing in RUT verification for B2B reverse-charge applicability.
If you get this wrong
Fine framework under the Código Tributario: scaled fines, DGI-published interest, up to 100% under-reporting.
For the highest-intent reader of this section: you’re already non-compliant and you want a path forward.
Engage a Uruguayan tax representative. Voluntary correction (declaración rectificativa) prior to DGI audit unlocks fine mitigation.
| How TaxDo helps SaaS sellers stay compliant in Uruguay Uruguay’s Law 19.535 framework, alternative payment intermediary withholding, B2B reverse-charge, the 22% rate — manageable with integrated tooling. TaxDo plugs into your billing system, applies the correct Uruguay 22% IVA treatment, validates Uruguayan RUTs. Real-time Uruguay 22% IVA calculation.Continuous exposure tracking across 150+ countries.Global Tax Identity engine — validates Uruguayan RUTs and Tax IDs across 150+ countries.Native integrations with major accounting platforms. |
Foreign E-commerce Seller into Uruguay
The day your goods physically enter Uruguayan customs territory — that’s when DGI (through Aduana Uruguay) assesses Customs Duty under Mercosur Common External Tariff, IVA at 22%, and applicable specific taxes. The Uruguayan e-commerce market is smaller than neighbouring Argentina, Brazil, and Chile but operates under similar Mercosur-aligned frameworks.
Does this apply to your store?
If physical goods arrive at a Uruguayan address, yes. Import IVA applies at customs.
Trigger event → statutory deadline
Import IVA at every consignment. Structural question: Uruguayan subsidiary vs distributor.
Charging IVA on goods, shipping, and returns
Uruguayan subsidiary: 22% IVA on most taxable goods. 10% reduced rate for specified categories. On import: 22% IVA on customs value + Customs Duty (Mercosur CET) + applicable charges.
Invoice rules for e-commerce
CFE (Comprobantes Fiscales Electrónicos) progressively mandatory through DGI.
Submitting — and the marketplace question
Uruguayan subsidiary submits monthly returns through DGI Online Services. Mercado Libre Uruguay is the primary local marketplace.
The compliance cost stack
Mid-volume Uruguayan subsidiary: USD 12,000–45,000 per year. Subsidiary establishment USD 4,000–12,000.
Three repeat failures we keep seeing — and why
Mercosur CET familiarity, CFE infrastructure readiness, pricing for the 22% standard rate.
For the highest-intent reader of this section: you’re already non-compliant and you want a path forward.
Engage Uruguayan tax advisor. Voluntary correction unlocks fine mitigation.
| How TaxDo helps e-commerce sellers stay compliant in Uruguay Mercosur CET preferential treatment, Mercado Libre Uruguay operations, CFE infrastructure, the 22% rate environment — manageable with integrated tooling. TaxDo connects to your marketplace, store, and 3PL data, applies the correct Uruguay 22% IVA treatment per consignment per channel. Real-time tax calculation per consignment.Automated registration and filing across 150+ countries.Global Tax Identity engine — validates Uruguayan RUTs and counterparty Tax IDs.Exposure tracking across every destination. |
Foreign Importer / Physical Goods Seller into Uruguay
Import IVA at 22% on customs value + Customs Duty (Mercosur CET) + applicable specific taxes. Mercosur Common External Tariff provides preferential treatment for goods originating in Argentina, Brazil, Paraguay. Uruguay’s Zonas Francas framework provides material structural preferential treatment for export-oriented operations.
Whether you’re the importer of record
Bring goods into Uruguay and Aduana Uruguay assesses Customs Duty under Mercosur CET, IVA at 22%, and applicable specific taxes.
Trigger event → statutory deadline (the registration timeline)
Import IVA at every consignment.
The registration walk-through
Aduana Importer Registry; Zona Franca tenant approval where applicable; foreign-investment registration through Banco Central.
How import IVA is calculated
22% IVA on customs value + Mercosur CET Customs Duty + applicable charges. Mercosur-origin goods receive preferential treatment.
Invoicing for re-sold imports
CFE format applies for onward sales.
Submitting and where importers extract real value
Monthly IVA returns through DGI. Input IVA recovery at 22% rate.
The real cost of compliance for importers
| Cost item | Range | Cadence |
| Uruguayan subsidiary establishment | USD 4K–12K | One-time |
| Annual IVA compliance | USD 12K–45K | Annual |
| Customs broker fees | USD 150–500/shipment | Per consignment |
| Aduana Registry | USD 2K–8K | One-time |
| CFE infrastructure | USD 5K–20K | One-time |
| Zona Franca tenant | USD 6K–22K | One-time |
| ERP integration | USD 10K–45K | One-time |
| Annual IVA audit support | USD 3K–11K | Annual |
Three repeat failures we keep seeing — and why
- HS classification correct under Mercosur CET.
- Mercosur origin documentation in place.
- Input IVA reconciliation discipline.
- Zona Franca documentation chain where preferential treatment claimed.
Customs and IVA fines together
DGI fine framework + Aduana penalties.
For the highest-intent reader of this section: you’re already non-compliant and you want a path forward.
Engage Uruguayan customs broker and tax advisor.
| How TaxDo helps importers stay compliant in Uruguay Mercosur CET, Zonas Francas, CFE infrastructure — technically solvable. TaxDo integrates with your ERP, ingests customs data. Native ERP integrations.Automated registration and filing in around 150 countries.Global Tax Identity engine — validates Uruguayan RUTs.Real-time exposure tracking. |
Local Uruguayan Business
If your business is established in Uruguay, RUT registration is mandatory from commencement. The structural choice is between the standard IVA regime and Monotributo / IMESI simplified frameworks for smaller taxpayers. The bigger 2026 questions involve CFE operational discipline and the monthly DGI Online Services filing rhythm.
When registration kicks in
Mandatory at commencement. Monotributo / IMESI for smaller taxpayers.
Acting in time and what backdating means
Within standard timeframes under Código Tributario.
Registering as a resident Uruguayan business
Through DGI Online Services.
What you charge — and the zero-rated vs exempt distinction
Standard 22% on taxable supplies. Reduced 10% on specified categories. Zero-rated 0% on exports and qualifying Zona Franca supplies. Exempt: immovable property, residential rent, healthcare, education, certain financial services.
Invoicing rules and CFE infrastructure
CFE progressively mandatory through DGI.
Filing rhythm for local businesses
Monthly IVA returns through DGI Online Services.
The internal cost of being IVA-compliant
Mid-sized business: USD 8,000–35,000 per year on external Uruguayan Contador Público support.
The traps for local Uruguayan businesses
Where do most local Uruguayan finance teams trip up first in 2026?
CFE operational discipline.
What’s the second?
Monotributo / standard regime choice.
And the third?
Misjudging zero-rated vs exempt distinction for mixed-supply businesses.
Fine exposure for residents
Standard DGI framework.
Catching up after a misclassification
Declaración rectificativa unlocks fine mitigation.
| How TaxDo helps Uruguayan businesses stay compliant CFE infrastructure, customer RUT verification, monthly DGI Online Services rhythm. TaxDo connects to your accounting platform, automates filing, validates Uruguayan RUTs. Native integration with major accounting platforms.Global Tax Identity engine — validates Uruguayan RUTs.Automated filing workflow. |
Cross-track essentials
Invoicing requirements
CFE (Comprobantes Fiscales Electrónicos) progressively mandatory through DGI.
Audit and record-keeping
Records retained 10 years from date of relevant tax filing.
Fines summary
| Violation | Fine |
| Late filing | Scaled fines under Código Tributario |
| Late payment | DGI-published interest |
| Under-reporting | Up to 100% of underpaid IVA |
| Tax evasion | Criminal prosecution |
Frequently asked questions
What is the Uruguay IVA rate in 2026?
For all sellers
22% standard rate — among the highest in Latin America. 10% reduced rate for specified categories. Zero-rated 0% on exports and qualifying Zona Franca supplies.
Do foreign companies need to register for Uruguay IVA?
For overseas businesses
Yes under Law 19.535 (effective 1 January 2018) for non-resident vendors providing digital services to Uruguayan consumers. Direct DGI enrolment or alternative credit card processor withholding.
How often do I submit Uruguay IVA returns?
For all registered taxpayers
Monthly through DGI Online Services.
What is Law 19.535?
For overseas digital service providers
Uruguay’s foreign digital services framework operational since 1 January 2018 — one of the earliest LatAm cross-border digital services regimes.
How is import IVA calculated at Uruguayan customs?
For foreign importers
22% IVA on customs value + Mercosur CET Customs Duty + applicable charges. Mercosur-origin goods receive preferential treatment.
What is the Zona Franca framework?
For foreign importers/manufacturers
Uruguay’s Free Trade Zone framework providing structural preferential treatment for export-oriented operations.
How do I correct an error in Uruguay IVA return?
For all taxpayers
Declaración rectificativa unlocks fine mitigation prior to DGI audit.
Recent and upcoming changes
Already in effect
- Law 19.535 foreign digital services framework operational since 1 January 2018.
- CFE progressively mandatory through DGI.
- Mercosur CET preferential treatment continues.
Coming up
- Continued DGI modernisation through CFE enhancements.
Primary sources cited in this guide
- Dirección General Impositiva (DGI): https://www.dgi.gub.uy
- Ministry of Economy and Finance: https://www.mef.gub.uy
- Aduana Uruguay: https://www.aduanas.gub.uy
- Law 19.535: https://www.impo.com.uy
Disclaimer
This guide is provided for general informational purposes by the TaxDo Tax & Regulatory Advisory Team. While our team thoroughly reviews and updates this content for accuracy before publishing, tax regulations change rapidly and local practices vary. This article does not constitute formal legal, tax, or accounting advice and should not be relied upon for specific compliance decisions. Always consult a qualified, licensed tax professional before taking action. TaxDo accepts no liability for actions taken based on this content.
