Uruguay - Digital Services VAT

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The Uruguayan tax authority recently confirmed in Decree 144/018 that VAT is applicable on the sale of digital services - provided through the internet, technological platforms, computer applications, or similar means - to consumers by non-resident businesses.

There is no registration threshold meaning that non-resident businesses making these types of supplies will need to appoint a local representative and VAT register from the first sale that they make in the country if they are liable to local VAT. The end-user is considered to be located locally when either the IP address of the device used for hiring the service or the user billing address is located in Uruguay. If neither can be confirmed, the user is considered to be in Uruguay if the payment is made within Uruguay.

The current VAT rate in Uruguay is 22%.

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