Uruguay Considers Applying VAT to Online Foreign Purchases to Address Market Inequity

• The government plans to apply VAT to online purchases from abroad to address inequity.
• President Yamandú Orsi stated this measure responds to business sector demands for fair competition.
• The proposal is part of broader tax changes in the budget law.
• The “Temu effect” has increased foreign purchases, impacting local businesses.
• The Chamber of Commerce and Services of Uruguay reports a monthly loss of 15 million dollars due to Temu.
• A proposed law suggests limiting tax-free purchases to one per year to discourage foreign buying.

Source: ambito.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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